For each of the markets listed below, determine whether the market can reasonably be described as monopolistically competitive.a. Satellite radiob. AM or FM radioc. Common saltc. Clothinge. Shampoo a. not monopolistically competitiveb. monopolistically competitivec. not monopolistically competitived. monopolistically competitivee. monopolistically competitive

In a monopolistically competitive market, each firm produces a differentiated and unique product, so firms face _____-sloping demand curves. downward

Which of the following is not a characteristic of monopolistic competition? The products are standardized.

The characteristics of an oligopoly competitive market are: a few large producers.either standardized or differentiated products.producers who are price markers.producers who behave strategically when making decisions related to the features, prices, and advertising of their products.operation in industries with extensive entry barriers.

In the presence of _____ profits, firms enter a monopolistically competitive market until the market reaches the point at which the firms are generating a _____ profit; then entry stops, and the market settles into its _____-run equilibrium. economic; normal; long

In monopolistically competitive markets, which of the following allow consumers to be more responsive to price changes? The availability of close substitutes.

Zero _____ profit is when the firm's revenue equals its operating cost without a loss. economic

Which of the following are the four characteristics of a perfectly competitive market? Easy entry and exitLarge number of buyers and sellersProducers who are price takersStandardized product

The strategy of distinguishing one firm's product from the competing products of other firms is called _____ differentiation. product

Given that oligopolistic firms face other competitors in their markets, their behavior must definitely be _____. strategic

A concentration index that measures the sum of the squared percentage of sales from all firms in a particular industry is called The Herfindahl-Hirschman Index (HHI).

For _____ competitive firms, branding serves as a signal to consumers about the products they are going to purchase. monopolistically

Monopoly is a market structure characterized by: a good or service for which there are no close substitutes.a market with barriers to entry.a single seller.the firm having significant price control.

Monopolistic competition and perfect competition have one main characteristic in common: relatively easy market _____ and _____. entry; exit

A concentration ratio that measures the percentage of sales by the four largest firms in a particular industry is called the _____. four-firm concentration ratio

Monopolistic competition is a market characterized by: a relatively large number of sellers producing a differentiated product, for which they have some control over the price they charge, in a market with relatively easy market entry and exit.

Monopolistically competitive markets: combine characteristics of competitive markets and pure monopolies.

In a _____ competitive market, consumers can usually find exactly what they are looking for based on their preferences and budgets. monopolistic

Monopolistic competition and a monopoly are: not the same market structure.

The value of the economic surplus that is forgone when a market is not allowed to adjust to its competitive equilibrium is called _____ loss. deadweight

Which of the following aspects of oligopolistic firms does game theory help us study? Their strategic behavior

Profit maximization implies that monopolistically competitive firms should expand production up to the point where the marginal revenue equals the marginal cost. True

The strategy of distinguishing one firm's product from the competing products of other firms is called product _____. differentiation

A number of entry barriers are present in oligopolistic markets, including: control of the resources needed to produce output.economies of scale that may allow only a small number of firms to operate in a market.patents.pricing strategies.significant costs of capital.

The mutual interdependence observed among oligopolistic firms is often studied using the tools of _____ theory. game

Event; Demand will: ; Elasticity of Demand will:The number of other restaurants in the are increases.; decrease; increaseSteve institutes a frequent-diner program whereby a customer who visits five times receives a sixth meal free. increase; decreaseThe number of consumers in the area increases. increase; not change Determine how each of the events listed below would affect the demand curve for food at Steve's Shrimp Shack, a seafood restaurant operating in a monopolistically competitive restaurant market. The demand could increase (rightward shift) or decrease (leftward shift), and it also could become more or less elastic.Event; Demand will: ; Elasticity of Demand will:The number of other restaurants in the are increases.Steve institutes a frequent-diner program whereby a customer who visits five times receives a sixth meal free.The number of consumers in the area increases.

Which of the following describes collusion? A situation in which decision makers coordinate their actions to achieve a desired outcome.

When there is productive efficiency: output is produced using the fewest resources possible to produce a good or a service.output is produced at the lowest possible total cost per unit of production.

Games can have more than one Nash equilibrium. True

In an _____ market, there are relatively few firms and the product is either standardized or differentiated. oligopoly

For each of the markets listed below, determine whether the market can reasonably be described as oligopolistic.a. Satellite televisonb. Hotelsc. Tomatoesd. Crude oil a. oligopolisticb. not oligopolisticc. not oligopolisticd. oligopolistic

One common feature of _____ competitive markets is that firms invest heavily in product development and innovation, which benefits _____ greatly. monopolistically; consumers

Producers operating in oligopolistic markets generate: normal profits and even losses in the short run.

The percentage of total market sales accruing to one specific firm is called the _____ share. market

Which of the following describes a cartel? A group of competing companies that aim to maximize joint profits by coordinating their policies to fix prices, manipulate output, or restrict competition.

Suppose Carl's Candies sells 150 boxes of candy for $4 each. The total fixed cost of the 150 boxes is $150, and the average variable cost of the 150 boxes is $2 per box. Carl's earns an economic profit of $1 per box.

The profit maximization rule states that a firm should produce a level of output where the marginal _____ equals the marginal cost revenue

When monopolistically competitive firms follow the marginal revenue and the marginal cost rule, the result can be _____ profits, _____ profits, or even losses, depending on market condition. economic; normal

A clear benefit to monopolistic competition for consumer is product _____. variety

Anti trust laws: are designed to prevent firms from engaging in behaviors that would lessen competition.

How much are consumers willing to pay for the 4,400th pair of sunglasses? $120How much must suppliers charge for the 4,400th pair of sunglasses? $40What is the difference between the marginal benefit of the 4,400th pair of sunglasses and the marginal cost of that pair of sunglasses? $80 Suppose the table below represents the demand and supply schedule in the market for sunglasses.Price; Quantity Demanded (pairs); Quantity Supplied (pairs)$140; 4,000; 6,400120; 4,400; 6,000100; 4,800; 5,60080; 5,200; 5,20060; 5,600; 4,80040; 6,000; 4,40020, 6,400; 4,000How much are consumers willing to pay for the 4,400th pair of sunglasses?How much must suppliers charge for the 4,400th pair of sunglasses?What is the difference between the marginal benefit of the 4,400th pair of sunglasses and the marginal cost of that pair of sunglasses?

A situation in which individuals, firms, or any group of actors coordinate their actions to achieve a desired outcome is: collusion.

Which of the following tells us the profit per unit? Profit per Unit = Price - Average Total Cost(π/Q) = P - ATC

The monopolistically competitive firm produces _____ output than would be productively efficient. lower

A person who invest the ability to time travel will likely operate at a _____, because there would be no substitutes and entering that market would be difficult for anyone else. monopoly

A situation in which a particular strategy yields the highest payoff, regardless of the other player's strategy, is: a dominant strategy.

(P - ATC) x Q equals _____. profit

The top four firms in the retail surfboard industry maintain total sales of $8 million per year. If the entire retail surfboard industry sells $10 million worth of output, then the four-firm concentration ratio is ___%. ($8/$10) x 100% = 80%

To maximize profits, a cartel should produce a level of output where the: marginal revenue equals the marginal cost.

The efficiency loss resulting from a monopolistically competitive market is called: deadweight loss.

When the marginal benefit of the last unit equals the marginal cost of the last unit, production is _____ efficient. allocatively