Monopolistic or Oliogaphy
Would the coffee industry be considered an oligopoly or does it have monopolistic competition?
Monopolistic competition
When many small firms compete too sell similar but not identical products
Monopolistic
True or False:
Non-price competition is not a characteristic of oligopoly.
FALSE
Non-price competition is a key characteristic.
This 2-word term describes the cost advantage firms get when their average cost per unit falls as the total volume of production increases.
What is economies of scale
Equation for monopoly profit
What is (P-ATC)*Q
Is the competition between Home Depot and Lowe’s considered to be monopolistic competition or an oligopoly?
Oligopoly
A large firm that have all or most of all the sales in a industry
Oligopoly
True or False:
Monopolistic competition is characterized by a single firm producing a unique product.
FALSE
Multiple firms produce differentiated products.
High startup ______
Costs
In a monopoly, when does a firm earn a profit?
What is P>ATC
In India the manufacturing of vehicles is primarily done by a few companies including Maruti Suzuki Ltd., Tata Motors, Hyundai, and Ford. Would this be considered monopolistic competition or an oligopoly?
Oligopoly
When only one company provides the supply of a good or service
Monopoly
True or False:
Advertising is an important aspect of monopolistic competition.
TRUE
Advertising helps differentiate products, attracts customers, and create brand loyalty.
_________ of scale enjoyed by established firms
Economies
MC=MR is the optimal amount for monopolies or perfect competition?
What is both
In the U.S. there are more than 100 companies who produce golf balls that meet USGA standards. Would the golf ball market be considered to have monopolistic competition or would it be an oligopoly?
Monopolistic competition
When firms compete heavily in the industry dealing with monopolistic and oligopoly it’s called…
Competition
True or False:
Firms in oligopoly produce homogeneous products.
FALSE
Products may be differentiated or homogeneous.
____ is a major disadvantage of economies of scale
What is Natural monopolies
What is the Economic Profit formula?
What is Price - Opportunity Cost
Are collusions and cartels associated with monopolistic competition or oligopoly?
Oligopoly
And examples of a basketry store that sells bread, cookies, and muffins is what type of competition
And examples of an industry that sell automobiles, airlines, cell phones, and banking is what type of competition
1. Monopolistic
2. Oligopoly
True or False:
Oligopolies can lead to collusion and price-fixing.
TRUE
Firms may cooperate to control prices.
If a firm's Total Cost increases by 50% while its output doubles, this specific "Average" metric is falling, indicating the firm is experiencing Economies of Scale.
What is Average Total Cost
For a firm with a downward-sloping demand curve, this value is always less than the price because the firm must lower the price on all previous units to sell one additional unit.
What is marginal revenue