econ 201 – ch.13

a market structure in which barrier to entry are low and many firms compete by selling similar, but not identical, products

change in total revenue/ change in quantity

all the activities necessary for a firm to sell a product to a consumer

-perfectly: horizontal demand curve -monopolistically: downward sloping demand curve

the actions of a firm intended to maintain the differentiation of a product over time

grants legal protection against other firms using it's products name

True

true

zero accounting profit take opportunity costs into account, while zero economic profit does not. if a firm has zero accounting profits, it will be making an economic loss. if a firm has zero economic profits, they have will positive accounting profits.