« previous next »

Author Question: Monopolistic competition and perfect competition differ because A) only monopolistically ... (Read 18 times)

rl

  • Hero Member
  • *****
  • Posts: 579
on: Jul 1, 2018
Monopolistic competition and perfect competition differ because
 
  A) only monopolistically competitive firms will set MR = MC.
  B) only perfectly competitive firms will set MR = MC.
  C) only monopolistic competition allows for entry of other firms in the long run.
  D) only competitive firms take the price as given.

Question 2

If an incumbent threatens to retaliate against entry, but its profits are greater under accommodated entry than under the proposed threat, potential entrants will ignore the threat.
 
  What will be an ideal response?
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


l.stuut

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

True. The threat is not credible since the incumbent firm is better off accommodating entry than retaliating.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Metabolic rates of animals that differ in size. Metabolic rates of animals that differ in size.
Deserts differ across the world. (a) Acacia trees between a gravel plain and sand dunes in the Namib Deserts differ across the world. (a) Acacia trees between a gravel plain and sand dunes in the Namib
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"
Richard Wrangham’s “female-bonded” theory of intergroup competition was highly influential in our un Richard Wrangham’s “female-bonded” theory of intergroup competition was highly influential in our un
The skulls of living haplorhines differ from those of strepsirhines by having large brains, an enclo The skulls of living haplorhines differ from those of strepsirhines by having large brains, an enclo
"Practice makes perfect" "Practice makes perfect"
Video: Electromagnetic Spectrum, Chlorophyll and Pigment & Light

For a complete list of videos, visit our video library