Question

Please Help

Question 13 0.16 pts An industry (such as California cheese) might advertise so that its product (cheese) O will now be viewed as homo O may be characterized by a horizontal demand curve. O will be sold in perfectly competitive markets. O is no longer viewed as homogeneous. O will now have a price elasticity of demand that is more elastic. geneous for all producers. Question 14 0.16 pts Firms in a monopolistically competitive industry produce monopolistic goods only O homogeneous goods and services. O only industrial products-and no consumer products. O only consumer products-and no industrial products. differentiated products. Question 15 0.16 pts One source of economic inefficiency from monopolistic competition is O higher costs because firms can enter the industry less variety for consumers. more variety for consumers. O lower marginal costs, but higher average costs than with perfect competition. O markup.

Answer 1

13) is no viewed as homogenous

Advertising makes the good differentiated from other goods.

14) differentiated products

Firms in monopolistically competitive industry produce differentiated goods.

15) markup

Markup denotes the market power that allows firms to charge higher price creating inefficiency.

16 market power

Markup gives firms monopoly power.