Suppose all firms in a monopolistically competitive industry were merged into one large firm. Would that new

Question:

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.

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

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

See More Books

Question Posted: Dec 22, 2015 02:30 AM

See More Questions

Suppose that the government has decided to tax all the firms in a monopolistically competitive industry. Specifically, suppose it levies a fixed tax on each firm; that is, the amount of the tax is...
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...
A student remarks: If firms in a monopolistically competitive industry are earning an economic profit, new firms will enter the industry. Eventually, a representative firm will find that its demand...
A manufacturing company reports the following information for the month of May. Note: Assume all raw materials were used as direct materials. Activities for May Advertising expense Raw materials...
On January 1, 2015, Shay issues $700,000 of 10%, 15-year bonds at a price of 9734. Six years later, on January 1, 2021, Shay retires 20% of these bonds by buying them on the open market at 10412. All...
Explain the difference between a treatment group and a control group.
A round concrete storm sewer pipe used to carry rainfall runoff from a parking lot is designed to be half full when the rainfall rate is a steady $1 \mathrm{in}$./hr. Will this pipe be able to...
Wright Cola Corporation produces a new soft drink brand, Sweet Spring, using two production departments: mixing and bottling. Wright's beginning balances and data pertinent to the mixing department's...
Mountain Dew Partnership (MDP) was setup 8 years ago. It was formed by 2 brothers Tawanda and Tendai and their best friend Brian. Tawanda and Tendai are originally from Zimbabwe but are now British...
What is the probability that the next person asked has two tattoos? Use the frequency distribution.
Why does price leadership sometimes evolve in oligopolistic markets? Explain how the price leader determines a profit-maximizing price.
Two firms produce luxury sheepskin auto seat covers, Western Where (WW) and B.B.B. Sheep (BBBS). Each firm has a cost function given by C (q) = 30q + 1.5q 2 The market demand for these seat covers is...
1. What language in a sales contract excludes all implied warranties? 2. How does an as is clause in a sales contract affect the bargain between the buyer and the seller? 3. Does an as is clause in a...
Lively Sales Co. has predicted the following costs for this year for 500,000 units: Manufacturing Selling and Administrative Variable $250,000 $125,000 Fixed 600,000 150,000 Total $850,000 $275,000...
Security in the workplace: Identify four potential security issues in the workplace, and why are these security issues are concerns. Give three examples of how your employer deals with potential...
Water at 40 C flows steadily from a large open tank and discharges to atmosphere through a pipe (D = 150mm), as shown in the figure (below). If the barometric (absolute) pressure is 96.5 kPa,...
4. Assume the vector is divided into two equal size (to be fit into the matrix) and two map tasks and one reduce task is used. Illustrate the computation of each map and reduce task, and give the...
Suppose x and y change together such that 1 = " or Ay 4 = 1 4 Ax. This means that there is a constant rate of change of y with respect to x. Furthermore, when x = 5,y= - 6. Write a formula that...
Consider a sealed rigid tank containing 0.12 kg of N 2 at 300 K and 1 atm (state 1). The N 2 is heated to a temperature of 700 K (state 2). Plot the process in Pv and Tv coordinates and determine the...
What are some of the possible sources of information about a company that could be used for determining the companys competitive stance?
In our numerical example, Hamburger Heavens expansion path requires K = L because w (the wage) and v (the rental rate of grills) are equal. More generally, for this type of production function, it...
Beths Lawn Mowing Service is a small business that acts as a price taker (MR = P). The prevailing market price of lawn mowing is $20 per acre. Although Beth can use the family mower for free (but...
Consider again the profit-maximizing decision of Beths Lawn Mowing Service from Problem. Suppose Beths greedy father decides to charge for the use of the family lawn mower. a. If the lawn mower...
Inflation in the United States is 2% per year and in Australia, it is 3% per year. The nominal interest rate in Australia is 6%. What does the Fisher effect predict the nominal interest rate in the...
Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $31,000 and will be depreciated straight-line over 10 years to a salvage value of zero. The grill will...
John wants to "roll in" or finance the loan fee of $3,800 into the loan amount which would make the loan $90,800 and the interest rate is 6%. Assume that the lender agrees to allow the loan fees to...

Suppose all firms in a monopolistically competitive industry were merged into one large firm. Would that new

Question:

Step by Step Answer:

Monopolistic competition is defined by product differentiation Each firm earns ec...View the full answer

Microeconomics

Students also viewed these Economics questions