When consumers do not differentiate between products offered by different sellers, the product turns into a “commodity”.

If rival firms can do the same thing, economic profit will be driven to zero.

Figure 6.1Refer to Figure 6.1. Given MR2, what is total revenue if the firm produces 60 units and the lowest point of the average-total-cost curve is $4?

Successful product differentiation ____ the price elasticity of demand and gives the firm ____ ability to control its price.

____ can arise as the result of economies of scale

Examples of cartels include all the following except:

“Unique resources” as a barrier to entry is exemplified in all of the following except:

In oligopoly

Compared to a brand name firm, a firm with no obvious stake in the future has an easier time persuading potential customers that it will make good on its promises.

Monopoly markets are more competitive than markets with monopolistic competition.