Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 11: Problem 7

Which statement is true? (LO3) a) When you decide which doctor to go to, your only concern is the quality of the medical service you will receive. b) People differentiate among goods and services based not only on physical differences but also on ambience, convenience, and service. c) Monopolistic competitors are usually large firms. d) None of the above.

Short Answer

Expert verified
The correct answer is statement B: "People differentiate among goods and services based not only on physical differences but also on ambience, convenience, and service." This statement accurately reflects the concept of monopolistic competition, as consumers consider various non-price factors when choosing between similar products or services.

Step by step solution

01

Statement A

This statement claims that when choosing a doctor, our only concern is the quality of medical service we will receive. This statement is not entirely true because there are several factors that people consider while selecting a doctor, such as the cost of treatment, the doctor's reputation, location, and in some cases, even the ambiance of the clinic or hospital. Hence, statement A is not true.
02

Statement B

This statement says that people differentiate among goods and services based not only on physical differences but also on ambiance, convenience, and service. This statement is true as it mirrors the concept of monopolistic competition, where goods and services of similar kind are offered by various sellers but differentiated based on their non-price factors. Consumers look for the overall experience or value for money when choosing between similar products or services. Thus, statement B is the true statement.
03

Statement C

This statement claims that monopolistic competitors are usually large firms. This statement is not necessarily correct. While some monopolistic competitors may be big companies, many small and medium-sized companies also engage in monopolistic competition to differentiate themselves from their competitors and target specific customer niches. Hence, statement C is not true.
04

Conclusion

Out of the four given statements, statement B is true: "People differentiate among goods and services based not only on physical differences but also on ambience, convenience, and service."

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

In the long run the monopolistic competitor will be _____. a) making a profit b) taking a loss c) breaking even

In the long run in monopolistic competition _____. a) most firms make a profit b) the absence of entry barriers ensures that there are no profits c) economies of scale ensure that there are no profits d) most firms lose money

Product differentiation can take place _____. a) only if there are physical differences among the products b) only if there are no physical differences among the products c) whether or not there are physical differences among the products

Each of the following is an example of price discrimination except _____. a) airline "youthfares" b) higher-price movie tickets after 5:00 p.m. and on weekends c) doctors charging more to patients who need lab tests d) A\&P's old grades A, B, and C

Which statement about price discrimination is true? (LO4) a) It generally hurts the poor. b) It is inherently evil. c) It involves charging at least two separate prices for the same good or service. d) It generally involves deceiving the consumer.
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free