Pricing in Monopolistic Competition Markets

Pricing in Monopolistic Competition Markets

Assessment

Flashcard

Other

University

Practice Problem

Hard

Created by

Wayground Content

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9 questions

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1.

FLASHCARD QUESTION

Front

What is monopolistic competition?

Back

A market structure with many firms selling similar but differentiated products.

2.

FLASHCARD QUESTION

Front

What is a key feature of monopolistic competition?

Back

Firms differentiate their products through branding, advertising, and quality

3.

FLASHCARD QUESTION

Front

How do firms in monopolistic competition set their prices?

Back

Based on perceived value, branding, and differentiation

4.

FLASHCARD QUESTION

Front

What happens in the long run in a monopolistic competitive market?

Back

New firms enter, increasing competition and normalizing profits

5.

FLASHCARD QUESTION

Front

What is a key difference between monopolistic and perfect competition?

Back

In monopolistic competition, firms set their own prices.

6.

FLASHCARD QUESTION

Front

Which of the following is NOT a pricing strategy in monopolistic competition? Value-based pricing, Psychological pricing, Dynamic pricing

Back

Collusive pricing

7.

FLASHCARD QUESTION

Front

What does demand elasticity mean in monopolistic competition?

Back

Demand is slightly elastic, meaning small price changes can affect demand.

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