Which of the following is a common criticism of advertising? а. It makes market entry easy. b. It creates a demonstration effect. It promotes freedom of expression. С.
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- 1. A monopolistic competitor engages in advertising to a. Provide information about its good or product. b. Differentiate its product from those if its rivals. c. Increase the demand for its good or service. d. All of the above. 2. Which of the following advertisements provides information to the consumer? a. “CarbChips have half the carbohydrates of regular potato chips”. b. “The Taj Mahal restaurant is like a trip to India”. c. “Brain-power Books – just think it!” d. “Avion Airlines wants to take you higher”. 3. Firms in an Oligopoly produce a quantity of output that is less than the level produced by a perfectly competitive market and charge a price that is greater than the perfectly competitive price. a. True b. FalseA - ay- A - EEE I Normal T No Spac. T Table Pa. Heading 1 Heading 2 Title Subtif Styles nt Paragraph Question 5 Based on market research, a film production company (monopolistically competitive firm) in Ectenia obtains the following information about the demand and production costs of its new DVD: Demand: P = 1,000 - 10Q Total Revenue: TR = 1,000Q – 10Q2 Marginal Revenue: MR = 1,000 – 20Q Marginal Cost: MC= 100 + 10Q where Q indicates the number of copies sold and P is the price in Ectenian dollars. a. Find the price and quantity that maximize the company's profit. b. Find the price and quantity that would maximize social welfare. c. Calculate the deadweight loss from monopoly. Question 6 Give an example of a government-created monopoly. Is creating this monopoly necessarily bad public policy? Explain. Question 7 cauletors to11 nat ealmonena1..hat m tnata nian P3 w 199 prt se 8. [O L P. 36Markbury is a monopoly selling widgets. If the government imposes a $100 000 tax on every monopolistic firm in the country, then Select one: a. Markbury’s annual profit will no change since its marginal cost is unchanged b. Markbury’s annual profit will fall by $100 000 since its marginal cost would rise by $100 000 c. Markbury’s annual profit will fall by less than $100 000 since its marginal cost would rise by less than $100 000 d. Markbury’s annual profit will fall by $100 000 but its marginal cost will not change e. The impact on Markbury’s profit is difficult ascertain, without more information
- Use the diagram to answer the following questions. Market Structure and Demand MC ATC D. D2 Quantity a. Compare the elasticity of a monopolistic competitor's demand with that of a pure competitor and a pure monopolist. A monopolistic competitor's demand curve is less v elastic than that of a pure competitor. A monopolistic competitor's demand curve is more | elastic than that of a pure monopolist. b. Using the diagram above, Identify the demand curve for each of the following: Monopolist: D3 Monopolistically competitive firm: D2 Perfectiy competitive firm: D1 C. Assuming identical long-run costs, as shown In the diagram, Identify graphically the price and output that would result In the long run under monopolistic competition. The long-run price and output for a monopolistically competitive firm is represented by Point B d. Contrast the two market structures In terms of productive and allocative efficiency. Instructions: Complete the table below by selecting options from each of the…1. Under the model of monopolistic competition, a(an) ________ in the number of firms in the industry will cause ________ to ________. 2. In the model of monopolistic competition, if the price is ______ than average costs, then firms are earning __________ economic profit and we should expect firms to _________ the industry. 3. In the model of monopolistic competition, if an industry has large ________ relative to another industry, then we should expect _________ firms to operate in a long-run equilibrium of that industry.Give typing answer with explanation and conclusion Demands for regulation of advertising _____ is a trend appearing in both industrialized and developing countries of medicines of alcohol of tobacco aimed at teenagers aimed at children
- A product market has only one seller.. There are no close substitutes for the product. What type of market is this and how does it set prices? Select one: a. It is an example of monopolistic competition where firms charge the same price. b. It is an example of perfect competition with market power. c. It is an example of a monopoly which set prices based on market demand. d. There is no way to tell where prices come from without knowing what the product is. e. It is a monopolistically competitive firm that can charge whatever it wants to charge.Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as: Choose correct and explain your choice a.the marginal benefit of advertising is positive. b.the marginal cost of advertising is positive. c.the marginal benefit of advertising exceeds the marginal cost of advertising. d.the marginal cost of advertising exceeds the marginal benefit of advertising.. Competitors in monopolistic competition have full control over- (A) The price of their product (B) Product quality (C) The shape of the market demand curve (D) The elasticity of product substitutions 8AM
- 1. Nori is a firm that sells products in an industry with a very high concentration of sellers. Nori's production decisions must consider its competitors' possible production decisions. In which market must Nori operate? A-Perfect market B-Monopoly market C-Oligopoly market D-Monopsony market E-Monopolistic competition 2. Koel is the single producer of home air conditioners in its rural market. The firm's monthly demand is described by the equation P = 5000 − 5Q, where P is the price and Q is the quantity of units sold. Which of the following must be true of Koel? A-An increase in price decreases the quantity sold. B-It is a natural monopoly. C-A decrease in price decreases the quantity sold. D-Higher levels of output bring in increasingly lower total revenue if demand is elastic. E-Maintaining the current price decreases the quantity sold over time.In the diagram below, when the competitive market is taken over by the monopolist, the monopolist is able to enjoy producer surplus in terms of the area(s)_ Dalam rajah di bawah, apabila pasaran kompetitif diambil alih oleh monopoli, monopoli dapat menikmati lebihan pengeluar sebanyak kawasan Price / Harga (P) D C B A C. E BCEH F d. BCEF Lin G QM H Qc SS = MC* MRM a. BCEH minus GFH / BCEH tolak GFH DD = P b. BCEF minus GFH / BCEF tolak GFH Output (Q)You own Athleticon, which manufactures athletic wear. Your new contract with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo. No one lese can manufacture athletic wear with the “Atlanta United” logo. What do you think will be Athleticon’s level of profitability on the sale of “Atlanta United” athletic wear? Explain why. Your contract with Atlanta United only lasts 3 years. It was not renewed. Other firms can now manufacture athletic wear with the “Atlanta United” logo It is now 5 years after your contract with Atlanta United was terminated. Any manufacturer that wants to can manufacture and sell athletic wear with the “Atlanta United” logo. What do you think will be the level of profitability and rate of return on manufacturing athletic wear with the “Atlanta United” logo? Explain why.