Author Question: In comparing monopolistic competition to perfect competition, one can conclude that the lack of free ... (Read 103 times)

skymedlock

  • Hero Member
  • *****
  • Posts: 561
In comparing monopolistic competition to perfect competition, one can conclude that the lack of free entry is the key to having the ability to set price.
 
  Indicate whether the statement is true or false

Question 2

An auction in which the price announced by the auctioneer DESCENDS is called a(n)
 
  A) Dutch Auction.
  B) English Auction.
  C) Sealed Bid Auction.
  D) Descending Option Auction.


k2629

  • Sr. Member
  • ****
  • Posts: 357
Answer to Question 1

False. Free entry is the key to driving long-run profit to zero. The key to price-setting ability is the downward-sloping demand curve. This can, in general, result from having few firms, but is due to product differentiation when considering monopolistic competition.

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

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?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

For a complete list of videos, visit our video library