Exam 17: Monopolistic Competition

What do demand and marginal revenue curves look like in monopolistic competition? How do they compare to the demand and marginal revenue curves in perfect competition and monopoly?

In monopolistic competition,a firm can set the price for its product because of

-The table above shows the revenue figures for the top four firms along with a total for the remaining firms in the fast-food industry.What is the four-firm concentration ratio for the industry?

Product differentiation means

Crest Toothpaste offers new whitening toothpaste one year,a new gel swirl design the next year,and an improved cleaning formula the year after.Crest Toothpaste does this because it is

A firm is spending the profit-maximizing amount on product development when

The women's dress industry is monopolistically competitive because each firm has

Which of the following is correct?

-The above figure shows a motel engaged in monopolistic competition with other motels.The equilibrium quantity at this motel is ________ rooms per day.

To maximize profit,a firm in monopolistic competition will produce the quantity where marginal revenue

A firm in monopolistic competition definitely incurs an economic loss if

What is the Herfindahl-Hirschman Index if the four firms in an industry account have market shares of 62 percent,15 percent,15 percent,and 8 percent?

-Suppose there are ten firms that occupy the Odell,Oregon cherry pie market.The market share of each firm is listed in the above table. a.What is the Herfindahl-Hirschman Index for this market? b.If Firm H and Firm A merge,what is the new Herfindahl-Hirschman Index for this market? c.A severe winter causes every firm except A,B,and E to close.With only these three firms operating,Firm A's market share is 71 percent,Firm B's market share is 23 percent,and Firm C's market share is 6 percent.What is the Herfindahl-Hirschman Index for this market now?

The figure above shows a firm's demand and marginal revenue curves and its cost curves. -If all firms in the industry have similar demand,marginal revenue,and cost curves as the firm in the figure above,in the long run

If the four-firm concentration ratio equals 0.1 percent for the Mexican tomato industry,then this industry is best characterized as

Concentration ratios

The Herfindahl-Hirschman Index is used as a guideline to determine if a market is competitive or concentrated.Calculate the index value for each market described below. a.100 firms,each of which produces 1 per cent of market output b.50 firms,each of which produces 2 per cent of market output c.25 firms,each of which produces 4 per cent of market output d.20 firms,each of which produces 5 per cent of market output e.10 firms,each of which produces 10 per cent of market output f.5 firms,each of which produces 20 per cent of market output g.2 firms,each of which produces 50 per cent of market output

In monopolistic competition there are ________ barriers to entry,so therefore in the long run,economic profit ________.

If the four-firm concentration ratio of an industry is

In the long run,a firm in monopolistic competition will produce