Exam 5: Perfect Competition, Monopoly, and Economic Versus Normal Profit

For a market to be characterized by monopoly, there must be

There will be long-run pressure on the price to rise whenever

The first firm in an industry

Under monopolistic competition there are

In the production of cell phones, Apple and Samsung are ____ and so there is ____ on economic profits to go to zero.

When there are significant barriers to entry and there are few firms in the industry we label this

Economic Profit exists whenever

-In Figure 5.7, assuming perfect competition and at MR₃ there will be

In Figure 5.8, if the supply curve moves from S2 to S3

The local residential electrical power industry can be best modeled using the model of

What moves when there is entry in monopolistic competition

There are two large chain coffee houses and McDonalds that all produce Frappuccinos in dozens of locations in a large city. The best model to analyze this market is

The firm's supply curve is their

An industry which has a 4-firm concentration ratio near 100 would best be described as

If entry is completely free, the demand curve for the leading, profit-making monopolistic competitor will

-In Figure 5.7, assuming perfect competition and at MR₄ there will be

Local telephone service was once an area in which consumers had no choices. Many young people no longer use "land lines" preferring instead to use their cellular phones. This means that the market has moved toward

If you drive on a rural stretch of highway and come upon an intersection in which there are two gas stations and you know them to be the only ones for 100 miles, they are

When a firm creates an industry