Under monopolistic competition, entry come the sector is-completely free of barriers.-more difficult than under pure competition yet not nearly as an overwhelming as under pure monopoly.-more daunting than under pure monopoly.-blocked.
You are watching: In the long run, the representative firm in monopolistic competition tends to have
A monopolistically compete firm"s marginal revenue curve-is downsloping and coincides v the demand curve.-coincides v the demand curve and is parallel come the horizontal axis.-is downsloping and lies below the need curve.-does no exist due to the fact that the for sure is a "price maker."
Monopolistic competition is defined by excess capacity because-firms are always rewarding in the long run.-firms fee a price that is greater than marginal cost.-firms develop at an calculation level less than the least-cost output.-the need for a product is perfect elastic in this type of industry.
In the lengthy run, the representative firm in monopolistic competition has tendency to have-excess capacity.-economic profits-no product differentiation.-a perfect elastic need curve.
At long-run equilibrium in monopolistic competition, over there is-allocative efficiency.-productive efficiency.-both allocative and also productive efficiency.-neither allocative nor productive efficiency.
Which statement worrying monopolistic vain is false?-In the long run p = AC > MC.-Firms may experience accident in the short run.-Firms identify their products, but the assets are reasonably substitutable.-Firms may experience positive economic profits in the lengthy run.
In long-run equilibrium, a profit-maximizing certain in a monopolistically competitive sector will develop the quantity of output where-ATC = P, mr = MC = P.-ATC -ATC -ATC = P, grandfather = MC
Mutual interdependence way that a firm"s-behavior is influenced by other firms" actions.-profits are affected by various other firms" entry or exit.-costs are influenced by other firms" costs.-revenues are affected by other firms" demand for its product.
If oligopolistic firms facing comparable cost and also demand problems successfully collude, price and output outcomes in this sector will be many accurately predicted by which of the complying with models?-the kinked demand curve design of oligopoly-the price-leadership version of oligopoly-the pure monopoly model-the monopolistic competition model
A major reason that firms type a cartel is to-reduce the elasticity of demand for the product.-enlarge the industry share for each producer.-minimize the costs of production.-maximize joint profits.
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Informal collusion to restrict output and also increase price is occasionally referred to as a-merger.-cartel.-tacit understanding.-kinked-demand oligopoly.