" In the long run, there is no difference between monopolistic competition and perfect competition." True, or False or ambigulous? Discuss the statement with respect to the following:
A.) The price charged to consumers
B.)The average total cost of production
C.) The efficiency of the market outcome
D.) The Typical firm's profit in the long run
In each of the following cases, explain how the advertisement functions as a signal to a potential buyer. Explain what information the buyer lacks that is being supplied by the advertisment and how the information supplied by the advertisment is likely to affect the buyer's willingness to buy the good.
a.) "Looking for work. Excellent refrences from previous employers available."
B.) "Electronic equipment for sale. All merchandise carries a one-year, no questions asked warranty."
C.) "Car for sale by original owner. All repair and maintenance records available.
A.) The price charged to consumers
B.)The average total cost of production
C.) The efficiency of the market outcome
D.) The Typical firm's profit in the long run
In each of the following cases, explain how the advertisement functions as a signal to a potential buyer. Explain what information the buyer lacks that is being supplied by the advertisment and how the information supplied by the advertisment is likely to affect the buyer's willingness to buy the good.
a.) "Looking for work. Excellent refrences from previous employers available."
B.) "Electronic equipment for sale. All merchandise carries a one-year, no questions asked warranty."
C.) "Car for sale by original owner. All repair and maintenance records available.