[Solved] Suppose an Industry Has One or Two Successful Franchises and There

What is the root cause of excess capacity in a monopolistically competitive industry? A)Inefficient producers. B)Product differentiation. C)Free entry. D)Rising marginal cost.

All of the following,except one,are benefits of product differentiation.Which is the exception? A)There is a wide variety of products for consumers to choice from. B)There are a large number of sellers from which consumers can choose. C)Goods are produced at the minimum average cost. D)Consumers benefit in terms of the locations and hours of operation of sellers.

Below are data for a monopolistically competitive firm. -Refer to the information above to answer this question.What output will this profit-maximizing firm produce? A)3. B)4. C)5. D)6. E)7.

Below are data for a monopolistically competitive firm. -Refer to the information above to answer this question.What is true if the firm is producing at the profit-maximizing output? A)It is producing at economic capacity B)It is achieving allocative efficiency. C)It is achieving both economic and allocative efficiency D)It is experiencing excess capacity

Suppose that it requires a special license in order to operate a firm in a certain type of industry.In addition,suppose that firms that hold such licenses are able to sell them for a high price.Which of the following statements is true? A)The firms in this industry must all be franchised. B)This is a typical monopolistically competitive market in which there are no economic profits in the long run. C)The government that issued the original licenses will be willing to issue more. D)There is free entry by new firms into this industry. E)Most firms currently in the industry are earning economic profits.

What is the term for an industry which is dominated by a few large firms? A)Monopoly. B)Oligopoly. C)Monopolistic competition. D)Perfect competition.

What is the name for the condition where a firm will not take action without considering the reactions of rival firms? A)Perfect competition. B)Productive efficiency. C)Mutual interdependence. D)Duopoly.

Which of the following characteristics most distinguishes an oligopoly industry from the other three types of market structures? A)Difficult entry. B)The possibility of differentiated products. C)Control of price by individual firms. D)Mutual interdependence.

The home appliance,automotive,brewing and computer hardware industries are all examples of what kind of industry structure? A)Perfect competition. B)Monopolistic competition. C)Monopoly. D)Differentiated oligopoly. E)Undifferentiated oligopoly.

All of the following,except one,could be a barrier to entry into an oligopoly industry.Which is the exception? A)The existence of economies of scale. B)Patents and copyrights. C)The restricted ownership of crucial natural resources. D)Natural monopoly.