曼昆经济学原理英文版文案加习题答案15章.docx

stic Competition 16 MONOPOLISTIC COMPETITION WHAT’ S NEW IN THE S EVENTH EDITION: There are no major changes to this chapter. LEARNING OBJECTIVES: By the end of this chapter, students should understand: what market structures lie between monopoly and competition. competition among firms that sell differentiated products. how the outcomes under monopolistic competition and under perfect competition compare. the desirability of outcomes in monopolistically competitive markets. the debate over the effects of advertising. the debate over the role of brand names. CONTEXT AND PURPOSE: Chapter 16 is the fourth chapter in a five-chapter sequence dealing with firm behavior and the organization of industry. The previous two chapters developed the two extreme forms of market structure —competition and monopoly. The market structure that lies between competition and monopoly is known as imperfect competition. There are two types of imperfect competition —monopolistic competition and oligopoly. This chapter addresses monopolistic competition while the final chapter in the sequence addresses oligopoly. The analysis in this chapter is again based on the cost curves developed in Chapter 13. The purpose of Chapter 16 is to address monopolistic competition —a market structure in which many firms sell products that are similar but not identical. Monopolistic competition differs from perfect competition because each of the many sellers offers a somewhat different product. As a result, monopolistically competitive firms face a downward-sloping demand curve while competitive firms face a horizontal demand curve at the market price. Monopolistic competition is extremely common. 287 ? 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 288 ? Chapter 16/Monopolistic Competition KEY POINTS: A monopolistically competitive market is characterized by three attributes: many firms, differentia