Monopolistic Competition

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Across
  1. 3. something which defenders of advertising claim it provides for consumers
  2. 5. where firms sell goods at prices that exceed marginal cost; a source of inefficiency in monopolistic competition
  3. 7. a situation where a firm will keep prices lower than they could be in order to deter new entrants
  4. 8. a market structure in which many firms sell products that are similar but not identical.
  5. 10. specialise in eye care; a market in which there is monopolistic competition
  6. 11. a positive externality for consumers due to consumer surplus due to the introduction of a new product when a new firm enters the industry
  7. 15. a negative externality for firms who lose customers and profits due to the entry of a new firm into the industry
  8. 17. a feature of monopolistic competition; firms compete for the same group of customers
  9. 18. provide healthcare for animals; a market in which there is monopolistic competition
  10. 19. a situation where firms hold price below average cost for a period to try and force out competitors or prevent new firms from entering the market
Down
  1. 1. a feature of monopolistic competition; firms sell goods that are at least slightly different from those of other firms
  2. 2. because of mark-up by firms in monopolistic competition, some consumers who value the good at more than the marginal cost of production (but less than the price) will be deterred from buying it.
  3. 4. a situation where a firm identifies parts of a market that are high in value added and seeks to exploit those markets
  4. 6. the means by which a business creates an identity for itself and highlights the way in which it differs from its rivals
  5. 9. a way in which critics of advertising claim advertising affects consumers
  6. 12. monopolistically competitive firms use this to compete due to the differentiation between their products.
  7. 13. the cost or benefit of one person’s decision on the well-being of a bystander (a third party) which the decision maker does not take into account in making the decision
  8. 14. monopolistically competitive markets do not have the same level of .... as perfectly competitive markets
  9. 16. a feature of monopolistic competition; firms can enter (or exit) the market without restriction.