ECON-2006EG Study Guide - Quiz Guide: Marginal Cost, Demand Curve, Procyclical And Countercyclical

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ceruleanraccoon367

7 Mar 2021

School

Laurentian

Department

Economics / Science Èconomique

Course

ECON-2006EG

Professor

Byron Eastman

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Document Summary

Differentiated products refer to goods that are similar but are not perfect substitutes. Homogeneous products refer to goods that are identical, and so are perfect substitutes. Oligopoly is the market structure that applies when there are few firms competing. Monopolistic competition is the market structure that applies when there are many competing firms and products are differentiated. The residual demand curve is the demand that is not met by other firms and depends on the prices of all firms in the industry. Collusion occurs when firms conspire to set the quantity they produce or the prices they charge. A grim strategy is a plan by one player to price a good at marginal cost forever if the other cheats on their agreement. Macroeconomics: study of economic aggregates and economy-wide phenomena. This is calculated by dividing a nation"s aggregate income by the number of people in the country.

Related Questions

1. A monopoly market structure is characterized by

a. large number of firms, standardized products, easy entry and exit.

b. large number of firms, differentiated products, easy entry and exit.

C. small number of firms, standardized or differentiated products, difficult entry.

d. one firm, a unique product without close substitutes, and impossible entry.

e. one firm, differentiated product, impossible entry.

2. Which of the following is not a characteristic of monopolistic competition?

a. Differentiated products

b. A downward-sloping demand curve for individual firms

c. Firms that are price makers

d. Impeded entry into the industry

e. A large number of firms

3. One factor that distinguishes oligopoly from other market structures is

a. the ease of entry into the market.

b. the interdependence of firms.

c. the slope of the demand curve.

d. the degree of product differentiation.

e. the amount of advertising expenditures.

lavenderbat941

Firms like Papa John's , Domino's, and Pizza Hut sell pizza and other products that are differentiated in nature. While numerous pizza chains exist in most locations, the differentiated nature of these firms' products permits them to charge prices above marginal cost. Given these observations, is the pizza industyr most likey a monopoly, perfectly competitive, monopolistically competitive, or an oligopoly industry? Use the causal view of structure, conduct, and performance to explain the role of differentiation in the market for pizza. Then apply the feedback critique to the role of differentiation in the industry.

burgundydeer691

Problem 5

Firms like Papa John's, Domino's, and Pizza Hut sell pizza and other products that are differentiated in nature. While numerous pizza chains exist in most locations, the differentiated nature of these firms' products permits them to charge prices above marginal cost. Given these observations, is the pizza industry most likely a monopoly, perfectly competitive, monopolistically competitive, or an oligopoly industry? Use the casual view of structure, conduct, and performance to explain the role of differentiation in the market for pizza. Then apply the feedback critic to the role of differentiation in the said industry.

blackyak408

ECON-2006EG Study Guide - Quiz Guide: Marginal Cost, Demand Curve, Procyclical And Countercyclical

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