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Indicate whether each statement refers to perfect competitio

Indicate whether each statement refers to perfect competition, monopoly, monopolistic competition, and/or oligopoly. Each statement may apply to more than one industry type; list all that apply.

1. A firm gains control over price by differentiating its product.
2. Firms in the industry never have control over price.
3. In the long run, economic profits must be zero.
4. Price control depends on whether firms compete or collude.
5. The good produced is unique with no substitutes.
6. The goods produced by each firm are always homogeneous.
7. The industry contains many firms.
8. There is at least one barrier to entry.

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1. A firm gains control over price by differentiating its product. MONOPOLISTIC COMPETITION
2. Firms in the industry never have control over price. PERFECT ...

Solution Summary

Indicate whether each statement refers to perfect competition, monopoly, monopolistic competition, and/or oligopoly. Each statement may apply to more than one industry type; list all that apply.

1. A firm gains control over price by differentiating its product.
2. Firms in the industry never have control over price.
3. In the long run, economic profits must be zero.
4. Price control depends on whether firms compete or collude.
5. The good produced is unique with no substitutes.
6. The goods produced by each firm are always homogeneous.
7. The industry contains many firms.
8. There is at least one barrier to entry.

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