Podcast
Questions and Answers
What is a characteristic of atomistic competition?
What is a characteristic of atomistic competition?
- A single firm has the power to influence the market price
- Firms have imperfect information
- Many firms are operating in the market (correct)
- There are barriers to entry for new firms
What is the price elasticity of demand in a perfect competition market?
What is the price elasticity of demand in a perfect competition market?
- Infinite, 𝜖 = −∞ (correct)
- Zero, 𝜖 = 0
- Unit elastic, 𝜖 = 1
- Relatively elastic, 𝜖 > 1
What happens to firms in a perfect competition market when the demand curve is flat?
What happens to firms in a perfect competition market when the demand curve is flat?
- They have a monopoly
- They become price takers (correct)
- They become price makers
- They experience a decrease in revenue
What is the condition for a firm to operate at its Minimum Efficient Scale (MES)?
What is the condition for a firm to operate at its Minimum Efficient Scale (MES)?
What is the characteristic of a firm in a long-run perfect competition equilibrium?
What is the characteristic of a firm in a long-run perfect competition equilibrium?
What is the relationship between the price and the average cost in a long-run perfect competition equilibrium?
What is the relationship between the price and the average cost in a long-run perfect competition equilibrium?
What is the consequence of free entry-exit in a market?
What is the consequence of free entry-exit in a market?
What assumption of perfect competition is challenged by the fact of product differentiation?
What assumption of perfect competition is challenged by the fact of product differentiation?
Who published the book 'Economics of Imperfect Competition' in the 1930s?
Who published the book 'Economics of Imperfect Competition' in the 1930s?
What is the main characteristic of Monopolistic Competition, according to Edward Chamberlin?
What is the main characteristic of Monopolistic Competition, according to Edward Chamberlin?
What is meant by 'product differentiation' in the context of Monopolistic Competition?
What is meant by 'product differentiation' in the context of Monopolistic Competition?
What is the main objective of firms in a Monopolistic Competition market?
What is the main objective of firms in a Monopolistic Competition market?
What is the characteristic of the demand curve in the Monopolistic Competition model?
What is the characteristic of the demand curve in the Monopolistic Competition model?
What happens to the individual demand curve as more firms enter the market?
What happens to the individual demand curve as more firms enter the market?
What is the characteristic of firms in the Long-run Monopolistic Competition equilibrium?
What is the characteristic of firms in the Long-run Monopolistic Competition equilibrium?
What is the relationship between price and marginal cost in the Long-run Monopolistic Competition equilibrium?
What is the relationship between price and marginal cost in the Long-run Monopolistic Competition equilibrium?
What is the characteristic of the price determination in the Monopolistic Competition model?
What is the characteristic of the price determination in the Monopolistic Competition model?
What is the profit earned by firms in the Long-run Monopolistic Competition equilibrium?
What is the profit earned by firms in the Long-run Monopolistic Competition equilibrium?
What is the consequence of free entry-exit in a market?
What is the consequence of free entry-exit in a market?
What is a characteristic of firms operating in monopolistic competition?
What is a characteristic of firms operating in monopolistic competition?
What is the implication of product heterogeneity in a monopolistic competition market?
What is the implication of product heterogeneity in a monopolistic competition market?
According to Chamberlin, what is the effect of product differentiation on society?
According to Chamberlin, what is the effect of product differentiation on society?
According to Dixit and Stiglitz, what is the condition for the optimum level of product variety?
According to Dixit and Stiglitz, what is the condition for the optimum level of product variety?
What is the main difference between Chamberlin's and Dixit and Stiglitz's views on product differentiation?
What is the main difference between Chamberlin's and Dixit and Stiglitz's views on product differentiation?
What is the title of the paper by Chamberlin (1950) referenced in the bibliography?
What is the title of the paper by Chamberlin (1950) referenced in the bibliography?
What is the criterion used by Dixit and Stiglitz to evaluate the optimum level of product variety?
What is the criterion used by Dixit and Stiglitz to evaluate the optimum level of product variety?
In what year was the paper 'When Product Variety Backfires' published?
In what year was the paper 'When Product Variety Backfires' published?
Which of the following sources provides information on the advantages and disadvantages of monopolistic competition?
Which of the following sources provides information on the advantages and disadvantages of monopolistic competition?
What is the possible outcome of the optimum level of product variety in monopolistic competition, according to Dixit and Stiglitz?
What is the possible outcome of the optimum level of product variety in monopolistic competition, according to Dixit and Stiglitz?
What is the topic of the blog post by Isfahan (2013)?
What is the topic of the blog post by Isfahan (2013)?