ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Efficiency
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Homogeneous products
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Zero economic profits
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No government intervention
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Detailed explanation-1: -Monopolistically Competitive firms have one characteristic that is like a monopoly (a differentiated product provides market power), and one characteristic that is like a competitive firm (freedom of entry and exit).
Detailed explanation-2: -Monopolistic competition is a market structure where: There are large number of sellers selling differentiated products. There is also no entry barriers on the firm. There is free entry and exit of new or existing firms.
Detailed explanation-3: -Answer and Explanation: (a.) Production is at minimum average total cost is NOT a characteristic of long-run equilibrium in a monopolistic competitive market.
Detailed explanation-4: -The presence of many companies. Each company produces similar but differentiated products. Companies are not price takers. Free entry and exit in the industry. Companies compete based on product quality, price, and how the product is marketed. 27-Nov-2022
Detailed explanation-5: -Single supplier. A monopolistic market is regulated by a single supplier. Barriers to entry and exit. Profit maximizer. Unique product. Price discrimination. 04-Dec-2022