Answer:
b. lower price than the pre-subsidy equilibrium, and buyers pay a lower one.
Explanation:
A subsidy is a governments intervention in the form of cash or tax cuts. The government offers subsidies to producers to motivate them to produce more or to lower their cost of production. As a result, there will be more products in the market or goods will be cheaper.
Equilibrium price refers to the price determined by the forces of supply and demand. It is the intersection of the demand and supply curve. It is the price that buyers are willing to pay for a certain quantity of a product; all other factors held constant.
Should a producer receive a subsidy, It will lower his cost of production. The producer's output will cost less. He can afford to offer sellers a lower price as a result of the subsidy. The traders will be able to sell the products in the market at a low price compared to a situation with no subsidy.
Monopolistically competitive firms (A) cannot influence the market price by virtue of their size alone while monopolies and oligopolies can.
<h3>
What is a monopoly?</h3>
- A monopoly occurs when there is a single seller in the market.
- The monopoly case is considered the polar opposite of perfect competition in conventional economic theory.
- The demand curve facing the monopolist is, by definition, the industry demand curve, which is downward sloping.
<h3>What is
oligopoly?</h3>
- Oligopolistic markets are characterized by a small number of suppliers.
- They can be found in all nations and in a wide range of industries.
- Some oligopoly markets are very competitive, whereas others are substantially less so, or appear to be.
Monopolistically competitive enterprises, unlike monopolies and oligopolies, cannot influence market prices only through their size.
Therefore, monopolistically competitive firms (A) cannot influence the market price by virtue of their size alone while monopolies and oligopolies can.
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Correct question:
The feature that differentiates monopolistic competition from monopolies and oligopolies is that monopolistically competitive firms.
(A) cannot influence the market price by virtue of their size alone.
(B) are price takers.
(C) do not have a price as a decision variable.
(D) benefit from barriers to entry.
Answer:
The correct answer is letter "B": attention.
Explanation:
Attention is the mental activity by which individuals focus their attention on a given subject they are dealing with. By doing this, people leave behind any other situation around to concentrate only on the task they are given. This scenario takes place in complicated exercises that push people's knowledge to the limit or when the exercise is of interest or important for the individual.
There are several first mover advantages including:
-Brand recognition: better chance of being recognized if you were the first to do something
- Economies of Scale: learn how to perfect and grown in the market before other competitors come along
-Switching costs: when customers are established with the first brand they are less likely to want to spend the money to switch to a new competitor
