Suppose all firms in a monopolistically competitive industry were merged into one large firm. Would that new

Question:

Suppose all firms in a monopolistically competitive industry were merged into one large firm. Would that new firm produce as many different brands? Would it produce only a single brand? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

See More Books

Question Posted: Dec 22, 2015 02:30 AM

See More Questions

Suppose that the government has decided to tax all the firms in a monopolistically competitive industry. Specifically, suppose it levies a fixed tax on each firm; that is, the amount of the tax is...
John Maynard Keynes (a famous British economist) said, In the long run we are all dead. An important message in this chapter is, to paraphrase Keynes, In the long run, all profits in a...
A student remarks: If firms in a monopolistically competitive industry are earning an economic profit, new firms will enter the industry. Eventually, a representative firm will find that its demand...
A manufacturing company reports the following information for the month of May. Note: Assume all raw materials were used as direct materials. Activities for May Advertising expense Raw materials...
On January 1, 2015, Shay issues $700,000 of 10%, 15-year bonds at a price of 9734. Six years later, on January 1, 2021, Shay retires 20% of these bonds by buying them on the open market at 10412. All...
The Mann Company currently has 95,000 outstanding shares selling at $96 each. The firm is contemplating the declaration of a $5 dividend at the end of the fiscal year that just began. Assume there...
(a) What marketing actions would you expect the companies selling Yoplait, Dannon, and PepsiCo yogurts to take in response to Chobanis appearance and (b) how might Chobani respond?
The statement of cash flows of Spirit, Inc., reported the following for the year ended December 31, 2012: Cash flows from financing activities (amounts in millions) Cash dividends paid...
The following information was available for the year ended December 31, 2022: Net sales $ 300,000 Cost of goods sold 210,000 Average accounts receivable for the year 15,000 Accounts receivable at...
Consider the following balance sheet and income statement for Metro Eagle Outfitters, in condensed form, including some information from the cash flow statement: Required Calculate the following...
Why does price leadership sometimes evolve in oligopolistic markets? Explain how the price leader determines a profit-maximizing price.
Two firms produce luxury sheepskin auto seat covers, Western Where (WW) and B.B.B. Sheep (BBBS). Each firm has a cost function given by C (q) = 30q + 1.5q 2 The market demand for these seat covers is...
The average birth weight of domestic cats is about 3 ounces. Assume that the distribution of birth weights is Normal with a standard deviation of 0.4 ounce. a. Find the birth weight of cats at the...
Using the figure below, draw the FBD , ?Shear Force and Bending Moment diagrams and find the maximum internal moment for the beam shown. 10 kNm 10 kN 3 m
Suppose the goods market is: Y = 1800 - 100i and the LM curve Y = 500 +591, where x is the last digit of your ID number. Determine the equilibrium income (Y), interest rate (i). Explain the role of...
Complete the chart: [1] Length, L (m) Period, T (s) LogL LogT 0.10 0.63 0.20 0.90 0.30 1.00 0.40 1.27 0.50 1.42 0.60 1.55 0.70 1.68 0.80 1.80 0.90 1.90 1.00 2.02 Plot the data T vs L. [4 (title, axes...
A solid metal sphere with a diameter of 2 cm and a mass of 8 g is used for the following heat transfer experiments. You can assume the temperature throughout the inside of the metal sphere is...
2) A car 1200 kg is in a skid Force of friction 3200N and force of air resistance 1600N. Find the following i) The net force and acceleration of the car ii) The time required to stop from 95 km/hr...
What do you understand by the reactive and the proactive strategies for industrial relations? Which of these strategies invites labour laws? Why?
Ex. (17): the vector field F = x i-zj + yz k is defined over the volume of the cuboid given by 0x a,0 y b, 0zc, enclosing the surface S. Evaluate the surface integral ff, F. ds?
Compare the riskiness of the gamble of problem 3 with the riskiness of the gamble described in the chapter where the two outcomes were $30 and $20.
In our numerical example, Hamburger Heavens expansion path requires K = L because w (the wage) and v (the rental rate of grills) are equal. More generally, for this type of production function, it...
Beths Lawn Mowing Service is a small business that acts as a price taker (MR = P). The prevailing market price of lawn mowing is $20 per acre. Although Beth can use the family mower for free (but...
Consider again the profit-maximizing decision of Beths Lawn Mowing Service from Problem. Suppose Beths greedy father decides to charge for the use of the family lawn mower. a. If the lawn mower...
Long-term liabilities are shown in two places in the business firm's balance sheet depending upon when the long-term liabilities are scheduled for payment. True False
Julio is single with 1 withholding allowance. He earned $1,025.00 during the most recent semimonthly pay period. He needs to decide between contributing 3% and $30 to his 401(k) plan. If he chooses...
Acquirer firm plans to launch a takeover of Target firm. The manager of Acquirer indicates that the deal will increase the free cash flow of the combined business by $13.6m per year forever. The beta...

Suppose all firms in a monopolistically competitive industry were merged into one large firm. Would that new

Question:

Step by Step Answer:

Monopolistic competition is defined by product differentiation Each firm earns ec...View the full answer

Microeconomics

Students also viewed these Economics questions