B entry into the market is blocked c there are many

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b. entry into the market is blocked. c. there are many firms in the market. d. products are differentiated.
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4/16/2018 Module 5: Homework Assignment 9/16 Question 12 Correct Marked out of 1.00 Figure 13-4 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches. Refer to Figure 13-4. If the firm represented in the diagram is currently producing and selling Q a units, what is the price charged? Select one: a. P 1 b. P 0 c. P 2 d. P 3
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4/16/2018 Module 5: Homework Assignment 10/16 Question 13 Correct Marked out of 1.00 Question 14 Correct Marked out of 1.00 Economists have long debated whether there is a significant loss of well-being to society in markets that are monopolistically competitive rather than perfectly competitive. Which of the following offers the best reason why some economists believe that monopolistically competitive markets benefit consumers despite any loss of well-being? Select one: a. Consumers are better off choosing from a variety of differentiated products, even though product differentiation causes barriers that restrict entry into monopolistically competitive markets. b. Consumers pay a price equal to the marginal cost of producing a product, even though it is not produced at the minimum average total cost. c. Although consumers may pay a price greater than marginal cost for a product, the product is produced at the minimum average total cost. d. Although consumers may pay a price greater than marginal cost and the product is not produced at minimum average total cost, they benefit from being able to buy a differentiated product more closely suited to their tastes. When a credit card company offers different services with its card, like travel insurance for air travel tickets purchased with the credit card or product insurance for items purchased with the card, the credit card company is trying to Select one: a. shift the demand curve for competing firms to the right. b. create a perfectly competitive market in which to sell its credit card. c. convince customers that its card has greater value than those offered by rival firms. d. create a barrier to entry for competing firms.
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4/16/2018 Module 5: Homework Assignment 11/16 Question 15 Correct Marked out of 1.00 Question 16 Incorrect Marked out of 1.00 Juicy Couture has been successful in selling women's clothing using an unusual strategy. According to an article in the Wall Street Journal, the key to the firm's strategy is to "limit distribution to maintain the brand's exclusive cachet, even if that means sacrificing sales, a brand-management technique once used only for high-end luxury brands." In 2006, Juicy clothes were sold in only four department stores: Neiman Marcus, Saks, Bloomingdale's, and Nordstrom. In 2006, its sales have more than quadrupled since 2002.
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