The principle of minimum differentiation suggests that competitors
A) try to distinguish themselves by offering highly different products.
B) try to gain the largest market share by differentiating a popular product.
C) tend to make identical goods in order to appeal to the largest number of consumers.
D) try to decrease costs by minimizing the differences in the types of resources used.
C
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Utility is:
A) a measure of income. B) a measure of savings. C) a measure of satisfaction. D) a measure of expenditure.
In the long run, a perfectly competitive firm earns no accounting profits.
Answer the following statement true (T) or false (F)
The more narrowly we define a good, the easier it is to find substitutes, and
a. the greater is the number of producers of that good b. the greater is the supply-side response c. fewer consumers therefore wish to purchase the good d. less elastic is the demand for that good e. more elastic is the demand for that good
Adam Smith
A. argued that capitalism is often confused with democracy. B. wrote Das Kapital. C. said that the entrepreneur is motivated by self-interest. D. coined the phrase: "From each according to his ability, to each according to his needs."