Why is it that the greater the number of firms is in a monopolistically competitive industry, the

Question:

Why is it that the greater the number of firms is in a monopolistically competitive industry, the lower the price is, but the higher the average cost of each firm is for a given level of output?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

International Economics

ISBN: 978-1118955765

12th edition

Authors: Dominick Salvatore

See More Books

Question Posted: Oct 27, 2017 09:25 AM

See More Questions

The following graph shows a firm in a monopolistically competitive industry. a. Show the firms short-run profit-maximizing quantity and price. Is the firm making a profit? b. Carefully explain what...
John Maynard Keynes (a famous British economist) said, In the long run we are all dead. An important message in this chapter is, to paraphrase Keynes, In the long run, all profits in a...
Suppose all firms in a monopolistically competitive industry were merged into one large firm. Would that new firm produce as many different brands? Would it produce only a single brand? Explain.
Write the dual for each of the following primal problems: (a) Maximize z = - 5x1 + 2x2 Subject to - x1 + x2 - 2 2x1 + 3x2 5 X1, x2 0 (b) Minimize z = 6x1 + 3x2 Subject to 6x1 - 3x2 + x3 2 3x1 +...
Figure shows a reversible cycle through which 1.00 mol of a monatomic ideal gas is taken. Assume that p = 2p0, V = 2V0, p0 = 1.01 x 105 Pa, and V0 = 0.0225 m3. Calculate (a) The work done during the...
Estimate the number of automobile repair shops in your city by considering its population, how often an automobile needs repairs, and how many cars each shop can service per day. Then do a web search...
What sequence of steps does an auditor undertake when identifying control procedures that are potentially reliable in assessing control risk below the maximum? a. Consider the errors or frauds that...
Sprocket Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $905,000. Projected net cash inflows are as...
1. A curling stone sliding on ice undergoes a constant acceleration of 5.1 cm/s [E] as it travels from initial position before coming to rest. When the stone was released, it had an initial velocity...
Jimmy owns a garden in which he has planted N trees in a row. After a few years, the trees have grown up and now they have different heights. Jimmy pays much attention to the aesthetics of his...
What do we mean by monopolistic competition? Why do we use this model to examine intraindustry trade?
Why is the price lower and the number of firms greater with the larger market size with trade in a monopolistically competitive industry?
A 68 kg woman cycles at a constant 15 km/h. All of the metabolic energy that does not go to forward propulsion is converted to thermal energy in her body. If the only way her body has to keep cool is...
the lengthof a rectangle is eight more than twinc its width. the perimeter is 88 feet find the dimension of the rectangle
the sum of ages of a father and his son is 43 while the difference in their age is 25.what is the age of the father
Find three consecutive even integers such that 27 more than 3 times the second is 7 less than 8 times the first.
g(x)=-2x^(2) Plot five points on the graph of the function: one point with x=0, two the graph -a-function button. Explanation Check
What is the domain of f(x)=(3x)/(x-1) ? all real numbers all nonzero numbers all real numbers except 1 all real numbers except 3
A superconducting solenoid has 3300 turns per meter and carries 4.1 kA. Find the magnetic field strength in the solenoid.
Catalytic hydrogenation of naphthalene over PdC results in rapid addition of 2 moles of H 2 . Propose a structure for this product.
For the same given as in Problem 1, derive the supply curve of exports of the tradeable commodity for above-equilibrium prices. Problem 1 From the negatively sloped demand curve and the positively...
Draw a figure similar to the left-hand panel of Figure 16.2, but with DM vertical. Explain why D would also be vertical.
Draw a figure similar to the right-hand panel of Figure 16.2, but with SX vertical. Explain why S would also be vertical.
Subtract and simplify: 5x-6x+2-(-2-x+2x)
In order to value a company, you would need to forecast its future (a key word here) free cash flows. How would you approach this task? Using downloaded real data, try to make the forecast and see,...
share five (5) pieces of advice you would give the class about personal financial planning. Explain each. You might go back and look at the introductions in the first discussion for a general,...

Why is it that the greater the number of firms is in a monopolistically competitive industry, the

Question:

Step by Step Answer:

In a monopolistically competitive industry there is an inverse relationship between the number o...View the full answer

International Economics

Students also viewed these Micro Economics questions