Exam 17: Monopolistic Competition

-Kevin owns a personal training gymnasium in Orlando.The above figure shows the demand and cost curves for his firm,which competes in a monopolistically competitive market.Kevin will train how many clients per day?

-The figure above shows Firm X.The firm is operating in the ________ because it ________.

In monopolistic competition,each firm supplies a small part of the market.This occurs because

If the Herfindahl-Hirschman Index for an industry is 8,528,is the industry competitive or concentrated?

A market is considered competitive if the Herfindahl-Hirschman Index (HHI)is ________ and its four-firm concentration ratio is ________.

If a firm in the long run produces less than its efficient scale,it A) should raise its markup to increase its profit. B) should lower its markup to increase its profit. C) cannot be a perfectly competitive firm. D) should not advertise to increase its profit. E) must have its markup equal to zero.

In the example of the Nike running shoe,we see that

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) a monopoly trying to decrease its costs. B) a perfectly competitive firm trying to increase its price. C) a monopolistically competitive firm trying to maintain its economic profit. D) driving its competitors out of business. E) a perfectly competitive firm trying to increase its costs so it can increase its price.

-A market has 4 firms in it.The market shares are in the table above.The table represents a(n)________ market because its ________.

-There are 9 firms in an industry with market shares in the table above.Calculate the HHI for the industry.What kind of market does this operate in and why?

At a long-run equilibrium in monopolistic competition,price equals

Which of the following four-firm concentration ratios would be the best indicator of a monopoly?

Firms in monopolistic competition determine the profit-maximizing level of output by producing

If the Herfindahl-Hirschman Index in the market for single-use cameras equals 10,000,then the single-use camera industry is best characterized as

Which of the following is the best example of a differentiated product?

The firm in the above figure has an economic profit of ________.

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

If the four-firm concentration ratio for the market for diapers is 73 percent,then this industry is best characterized as

-The above figure shows a motel engaged in monopolistic competition with other motels.the figure above shows the ________ equilibrium in which the motel is ________ .

What is the four-firm concentration ratio if the four largest firms in an industry account for 5 percent,6 percent,7 percent,and 8 percent of total revenue?