Fill-in-the-Blank
1. Fill in the blanks to make the following statements correct.
a. Suppose the four largest steel producers in Canada
control 85 percent of total Canadian market sales among
themselves. We would say that this industry is highly
We say that 85 percent is the in this industry.
b. The theory of monopolistic competition helps explain
industries with a number of firms. The theory of
oligopoly helps explain industries with a number of
firms.
c. Toothpaste can be considered one product, but there are
many different varieties. Taken together, toothpaste can
be referred to as a product.
d. A firm that has the ability to set prices faces a demand
curve.
e. In general, imperfectly competitive firms set their prices
and then let determine sales.
2. Fill in the blanks to make the following statements correct.
a. A firm operating in a monopolistically competitive market
structure maximizes profits by equating and.
b. In long-run equilibrium, in comparison to perfect
competition, monopolistic competition results in a
range of products but at a cost per unit.