The word "competition" in the label "monopolistic competition" refers to the fact that:
A. there are very few firms producing in the market.
B. firms have no control over the price they charge.
C. firms vie against each other to get customers to buy their version of the product.
D. None of these
Answer: C
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Explain how the nominal wage rate is converted into the real wage rate. Explain why this process of conversion changes the nominal wage rate into the real wage rate
What will be an ideal response?
The Economic Freedom Index includes which of the following measures of economic freedom within a nation?
A) Levels of economic regulation B) Freedom of pricing C) Stability of monetary policy D) Taxation levels E) All of the above.
First-degree and second-degree price discrimination are similar in each of the following ways except which one?
A) They both convert all possible consumer surplus into additional economic profit. B) In both practices, firms earn greater economic profit than if they charged a single price for every unit. C) In both practices, firms produce more than if they charged a single price. D) In both practices, consumers pay higher prices for the first units that they buy.
A pure monopolist is selling 7 units at a price of $12. If the marginal revenue of the 8th unit is $4, then the price of the 8th unit is
A) $10. B) $11. C) greater than $12. D) $4.