« previous next »

Author Question: Monopolistic competition and perfect competition differ because A) only monopolistically ... (Read 48 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?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Metabolic rates of animals that differ in size. Metabolic rates of animals that differ in size.
The frequency of competition according to the number of species involved. The frequency of competition according to the number of species involved.
How to factor a perfect square trinomial How to factor a perfect square trinomial
Biking competition in the park Biking competition in the park
Perfect Cubes Perfect Cubes
Lastlings - Perfect World (Official Music Video) Lastlings - Perfect World (Official Music Video)
Video: Depolarization of the SA node, Action potentials of the myocardium & ANS effects

For a complete list of videos, visit our video library