Question: Explain why the monopolistic competitor is neither resource allocative efficient nor productive.

Explain why the monopolistic competitor is neither resource allocative efficient nor productive.

Step by Step Solution

★★★★★

3.49 Rating (185 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To conclude we can say that the monopolistic compe... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

788-B-E-M-E (6739).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

Explain why the monopolistic competitor breaks even in the long run.

Q:

1. Explain why the monopolistic competitors demand and marginal revenue curves are not the same. 2. Graphically show a monopolistic competitors short-run profit-maximizing price and quantity.

Q:

Is monopolistic competition efficient?

Q:

Explain why the monopolistic competitor is neither resource allocative efficient nor productive(be as detailed as possible).

Q:

1.One thing seems odd to me. Both the perfectly competitive firm and the monopolistic competitive firm produce the quantity of output at which MR MC. And both charge the highest price (per unit)...

Q:

11. Comparing different market structures In which of the following market structures do firms produce at an output level that is both resource allocative efficient and productive efficient? Perfect...

Q:

Question 2 During winter, we can see small sellers selling pitha (rice cakes) all over Dhaka. a) Is this market perfectly competitive? Explain the logic (reason) behind your answer. (3 marks) b) Are...

Q:

HI PLEASE ANSWER ALL 1. Assume the market for apples is initially in equilibrium. Which of the following will result in a higher equilibrium price of apples? a. An increase in both the demand for and...

Q:

A production possibility curve would ________ if the availability of an input decreased and would ________ if a lack of technology decreased production efficiency. (1 point) shift outward; shift...

Q:

Which of the following is likely to be present in a perfectly competitive market? a. Patents b. Government licenses c. Nonprice competition such as advertising d. High capital costs e. Firms...

Q:

David Wise handles his own investment portfolio, and has done so for many years. Listed below is the holding time (recorded to the nearest whole year) between purchase and sale for his collection of...

Q:

A solid conducting sphere of radius 2.00 cm has a charge of 8.00 C. A conducting spherical shell of inner radius 4.00cm and outer radius 5.00cm is concentric with the solid sphere and has a charge of...

Q:

14.41 CHALLENGE Use high school grades and SAT scores to predict high grade point averages. Run a logistic regression to predict HIGPA using the three high school grade summaries and the two SAT...

Q:

The project team has missed an important milestone, and their SPI is 0.77. The sponsor has notified the project manager that she intends on getting more involved in project decisions until they are...

Q:

When the patent expired on a drug named Librium (a sedative that was the forerunner of Valium), its price dropped from $15 to $1.10.8 Explain why this drop in price occurred. Relate your explanation...

Q:

Recall our example of an investment of $100,000 in research that yields a pioneering invention that has no commercial value, and a subsequent investment of $50,000 in development that yields an...

Q:

The duration of copyright increased under U.S. law in several steps since the eighteenth century until it reached the life of the author plus 70 years. Suppose that a writer completes a novel at age...

Q:

Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Cost per Unit Actual Cost per Unit $...

Q:

Question 4 1 pts ABC company makes 60 orders of chairs in a year and orders 10,093 chaiseach time the freed order costs are $636 81 per order and the carrying cost petitis $46:49. The chairs are sold...

Q:

The Fleming Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 25 percent. Assume all sales revenue is...