The market for Product A has many sellers, selling identical products, each earning an economic profit of zero in the long run. The market for Product B has many sellers, selling differentiated products, each earning an economics profit of zero in the long run. Given this information, one can conclude thatÂ
A. The markets for Product A and Product B are perfectly competitive.
B. The markets for Product A and Product B are monopolistically competitive.
C. The market for Product A is monopolistically competitive and the market for Product B is perfectly competitive.
D. The market for Product A is perfectly competitive and the market for Product B is monopolistically competitive.
Answer: D
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If an economy produces 3 million oranges that sell for $0.25 each and 100,000 cars that sell for $25,000 each, then when the market value of total output is calculated:
A. oranges receive a smaller weight than cars. B. oranges receive the same weight as cars. C. oranges receive a greater weight than cars. D. the market value of oranges is excluded.
Usually an abundance of natural resources ________ labor productivity.
A. increases B. has no effect on C. decreases D. doubles
The above figure shows the apartment market in Big City. What is the equilibrium rent in Big City?
A) $1500 B) $1350 C) $1250 D) $1125
Cartel pricing refers to the output and price choice of a cartel. This choice most closely resembles that of a:
a. b or d b. godfather oligopoly. c. duopoly. d. monopoly. e. more competitive industry.