List four characteristics of monopolistic competition
What will be an ideal response?
There are a large number of firms; each produces a slightly different product; firms compete on price, quality and marketing; and firms are free to enter and exit. As a result of these characteristics, there are no dominant firms and each firms have a small market share. Because the firms produce differentiated products, firms can charge a markup and, in the long run, firms have excess capacity.
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An oligopoly between two firms is called
A) a duopoly. B) an oligopoly; there are no special terms used for oligopolies with different numbers of firms. C) a biopoly. D) a dual-firm oligopoly.
In the neoclassical growth model, if two countries are exactly the same but one has a lower population growth, we would expect that country to have
a. higher output, a higher capital-to-labor ratio, and higher per capita output growth in the steady state. b. the same output and capital-to-labor ratio, but higher per capita output growth in the steady state. c. higher output, a higher capital-to-labor ratio, and the same per capita output growth in the steady state. d. higher output, the same capital-to-labor ratio, and the same per capita output growth in the steady state.