imperfect comp. - Assignment Essays %

question

What Is Imperfect Competition

answer

A large number of firms compete
Each firm produces a differentiated product
Firms compete on product quality, price & marketing
Firms are free to enter and exit the industry

question

firms cannot make an____in the long run

answer

economic profit (due to entry/exit)

question

In the Short Run, a firm in imperfect competition operates like a

answer

single-price monopoly.

question

In the short run, a firm might incur an

answer

economic loss

question

In the long run, firms in imperfect competition

answer

make 0 economic profit

question

Entry continues, & Price and Quantity fall, until

answer

P = ATC.

question

markup

answer

if a product sells for $125 and costs $100, the additional price increase is ($125 - $100) / $100) x 100 = 25%.

question

The markup between price and marginal cost arises from

answer

product differentiation.

question

To make an economic profit, a firm in imperfect competition must be

answer

innovative and develop new products.

question

Investments in Marketing and Innovation might

answer

lower atc and higher output

question

Advertising might also decrease

answer

the markup

question

Information has

answer

economic value

1 of 12

question

What Is Imperfect Competition

answer

A large number of firms compete
Each firm produces a differentiated product
Firms compete on product quality, price & marketing
Firms are free to enter and exit the industry

question

firms cannot make an____in the long run

answer

economic profit (due to entry/exit)

question

In the Short Run, a firm in imperfect competition operates like a

answer

single-price monopoly.

question

In the short run, a firm might incur an

answer

economic loss

question

In the long run, firms in imperfect competition

answer

make 0 economic profit

question

Entry continues, & Price and Quantity fall, until

answer

P = ATC.

question

markup

answer

if a product sells for $125 and costs $100, the additional price increase is ($125 - $100) / $100) x 100 = 25%.

question

The markup between price and marginal cost arises from

answer

product differentiation.

question

To make an economic profit, a firm in imperfect competition must be

answer

innovative and develop new products.

question

Investments in Marketing and Innovation might

answer

lower atc and higher output

question

Advertising might also decrease

answer

the markup

question

Information has

answer

economic value

Order an Essay Now & Get These Features For Free:

Place an Order