Which of the Following Characterizes the Difference Between Oligopoly and Monopolistic
Which of the following characterizes the difference between oligopoly and monopolistic competition?
A)Oligopolists are independent of each other;monopolistically competitive firms are interdependent.
B)Monopolistically competitive firms experience zero long-run economic profit;oligopolists may experience positive long-run economic profit.
C)There are many oligopolists but only a few monopolistically competitive firms.
D)Monopolistically competitive firms face horizontal demand curves;oligopolists face downward-sloping demand curves.
One of the reasons for low cross-price elasticity in monopolistic competition and high cross-price elasticity in perfect competition is that
A)Firms in perfect competition differentiate their products.
B)In monopolistic competition consumers loyal to particular brands view other available products as poor substitutes.
C)Consumers do not have perfect substitutes in perfect competition.
D)To save money,firms in monopolistic competition do not advertise.
For which of the following market structures will the firm's demand curve be tangent to the ATC curve in the long run?
In the short run,a monopolistically competitive firm
A)May make economic profits,but it fails to make economic profits in the long run because of the entry of new firms.
B)May make profits just as it does in the long run because firms can enter easily.
C)Produces at a rate at which long-run average cost equals price,but not at which long-run marginal cost equals marginal revenue.
D)Makes profits just as it does in the long run because entry is blocked.