This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In monopolistic competition, each firm's marginal revenue curve lies ________ its demand curve ... (Read 220 times)

drink

  • Hero Member
  • *****
  • Posts: 554
on: Jun 29, 2018
In monopolistic competition, each firm's marginal revenue curve lies ________ its demand curve because of ________.
 
  A) below; barriers to entry
  B) below; product differentiation
  C) above; barriers to entry
  D) above; product differentiation

Question 2

Two firms, Alpha and Beta, produce identical computer hard drives. They have identical costs, and the hard drives they produce are identical. The industry is a natural duopoly.
 
  Alpha and Beta enter into a collusive agreement, according to which they split the market equally. If both firms comply with the agreement A) together they will operate in a way indistinguishable from a monopoly.
  B) the price of a hard drive will be equal to marginal cost.
  C) each firm will make zero economic profit.
  D) the oligopoly will produce more hard drives than a profit-maximizing monopoly would produce.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

af

  • Sr. Member
  • ****
  • Posts: 356
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

A


drink

  • Member
  • Posts: 554
Reply 2 on: Jun 29, 2018
:D TYSM

lindahyatt42

  • Member
  • Posts: 322
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Welcome sign for Kenton, Tennessee, an example of competition for "White Squirrel Capital" Welcome sign for Kenton, Tennessee, an example of competition for "White Squirrel Capital"
Oxygen-binding curve for myoglobin Oxygen-binding curve for myoglobin
The population of Asia increases rapidly, the demand for food and water is also growing The population of Asia increases rapidly, the demand for food and water is also growing
Growth in the demand for oil from the developing world Growth in the demand for oil from the developing world
The slope of the curve y = ax^3 - bx^2 + cx - 3 at x = 2 is 5. If the point of inflection of the cur The slope of the curve y = ax^3 - bx^2 + cx - 3 at x = 2 is 5. If the point of inflection of the cur
At what speed does Grogzetti need to take the curve to avoid sliding? At what speed does Grogzetti need to take the curve to avoid sliding?
Video: Angiotensin II - kidneys, adrenal glands and dehydration

For a complete list of videos, visit our video library