Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economics Unit 3 > Monopolistic Competition > Flashcards

Monopolistic Competition Flashcards

1
Q

How many firms are there in monopolistic competition?

A

Many

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How high are the barriers to entry in monopolistic competition?

A

No barriers to entry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Are products homogeneous or differentiated in Monopolistic Competition?

A

Differentiated.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Can abnormal profit be made in Monopolistic competition?

A

Only in the short run.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What do firms maximise in monopolistic competition?

A

Profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What demand curve is in monopolistic competition?

A

Inelastic downward sloping curve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Is there perfect knowledge in Monopolistic competition?

A

No, but it is widely spread.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How efficient is monopolistic competition?

A

More Allocatively and Productively efficient than monopoly but less than perfect competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is a downside of product differentiation?

A

Does not create utility but just generates waste from advertising and packaging

How well did you know this?
1
Not at all
2
3
4
5
Perfectly

Economics Unit 3 (14 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions