Which of the following is typically not classified as a monopolistically competi
ID: 1225281 • Letter: W
Question
Which of the following is typically not classified as a monopolistically competitive industry? A. Restaurants and fast food chains B. Grocery stores C. Gas stations D. All of these choices are typically monopolistic competitors. Which would be an example of perfect price discrimination? A. When movies charge different prices at different times B. When airlines charge different prices for seats on the same flight C. When doctors charge rich and poor patients different prices for the same medical services D. None of the choices are examples of perfect price discrimination. Using the above graph, if demand curve D2 represents a monopolistic competitor and demand curve D3 represents a monopoly, then A. the monopolist has a more elastic demand curve than the monopolistic competitor. B. the monopolistic competitor has a more elastic demand curve than the monopolist. C. the monopolist and the monopolistic competitor have identical elasticity in their demand curves. D. None of these choices are true. Using the above graph, if demand curve D2 represents a monopolistic competitor and demand curve D1 represents a perfect competitor, then A. the perfect competitor has a more elastic demand curve than the monopolistic competitor. B. the monopolistic competitor has a more elastic demand curve than the perfect competitor. C. the perfect competitor and the monopolistic competitor have identical elasticity in their demand curves. D. None of these choices are true.Explanation / Answer
Q.21. All of the stated industries come under Monopolistic competitive market because they all include large numbers of buyers and sellers, selling hetrogenous product.
Q.22 . Perfect price diiscrimination is charging different price for each unit consumed. When airline charges different price for all seats it is an example of such discrimination.
Q.23. The monopolistic competitor has more elastic demand cure than monopolist's demand curve because former's demand curve is fmore flatter than the latter's.
Q.24. The perfect competitor has more elastic demand cure than monopolistic's demand curve because former's demand curve is fmore flatter than the latter's.
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