NO.PZ2023071902000037
问题如下:
QuestionIf a firm encounters numerous competitors, a downward-sloping demand curve for its products, and zero economic profits in the long run, which characteristic is it least likely to possess?
选项:
A.No pricing power
B.Low barriers to entry
C.Differentiated product
解释:
Solution
-
In the context of monopolistic competition, firms encounter many competitors and generally have limited pricing power due to the downward-sloping demand curve. While they may offer differentiated products through advertising and non-price strategies, they still maintain some level of pricing power. However, the ease of entry into the market results in zero economic profits in the long run
- Incorrect. "Low barriers to entry"&"Product differentiation" are characteristics of monopolistic competition.
• describe characteristics of perfect competition, monopolistic competition, oligopoly, and pure monopoly
题目也没说是monopolistic啊