Which of the following market structures are least likely to currently use non-price competition? a. A firm in an oligopoly market structure. b. A firm in a duopoly market structure. C. A monopolistic competitor. d. A perfect competitor. If a perfectly competitive firm is operating at a profit maximising quantity where AR is less than AC but above AVC, they will a. shut down in the long run. b. shut down immediately. c. increase their price. d. stimulate demand through non-price competition.
What effect should each of the following have on the demand for gasoline in a competitive market State what happens to demand. Explain your reasoning in each case and relate it to a demand determinant.
a. an increase in the number of cars
b. the economy moves into a recession
c. an increase in the price of car insurance, taxes, maintenance
d. consumer expectations of substantial price increases in gasoline