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The difference between monopolistic competition and perfect competition is that In perfect competition there are many buyers and sellers

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The difference between monopolistic competition and perfect competition is that In perfect competition there are many buyers and sellers. In perfect competition there are high barriers to entry. Monopolistic competitive firms can earn economic profit in the long run. In monopolistic competition, firms products are differentiated. Question 2 (2 points) The four-firm concentration ratio in an industry is 35%. This industry can best be described as Perfect Competition Monopolistic Competition Oligopoly Monopoly
Question 3 (2 points) If a monopolistic competition advertises successfully, we expect Demand for the firm's product to increase. The price elasticity of demand for the firm's product to decrease. The profit maximizing price to increase. All of the above. Question 4 (2 points) If monopolistic competitors earn economic profit in the short run, we expect More firms to enter the market. Prices in the market to rise. The price elasticity of demand to lower. Companies to continue earning economic profit in the long run.
Question 5 (2 points) Advertising by monopolistic competition can be efficient if It helps solve information problems in the market. It convinces people to buy something they otherwise wouldn't. It allows firms to charge higher prices. Advertising can never improve efficiency in the market. Question 6 (2 points) A strategy that firms will follow no matter what other companies do is called a Nash equilibrium. Trigger strategy. Dominant strategy. Conditional strategy.