What are the four types of industry structures? Compare and contrast them with the number of firms in the industry, whether firms produce homogeneous or heterogeneous products, whether there are economic profits in long-run equilibrium, and how frequently the model appears in the real world
The four types are perfect competition (many firms, homogeneous products, zero economic profits in long-run equilibrium, rare-or nonexistent-in the real world), monopolistic competition (many firms, heterogeneous products, zero economic profits in long-run, very common in the real world), oligopoly (few firms, homogeneous or heterogeneous products, zero or positive economic profits in the long-run, very common in the real world), and monopoly (only one firm, differentiated product, positive long-run economic profits, relatively uncommon in the real world, but it depends on the definition of the product and the market).
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A recent accounting graduate from a major business school is searching for a place to begin his career as an accountant. This individual is best considered as
A) structurally unemployed. B) seasonally unemployed. C) cyclically unemployed. D) frictionally unemployed.
Expenditures on advertising ________
A) can lower average total cost if the advertising increases the quantity sold by a large enough amount B) cannot lower average total cost because when a firm advertises it increases its costs C) always lower average total cost because whenever a firm advertises, it increases the quantity sold D) are variable costs so do not affect the average total cost