Compared to the perfectly competitive outcome, monopolistically competitive markets will result in:
a. a wider variety of products and higher prices.
b. less product variety and higher prices.
c. a wider variety of products and lower prices.
d. less product variety and lower prices.
a
You might also like to view...
John Doe participates in a welfare program which pays him $6,000 dollars. He can work but he loses 50 cents of the welfare check for every dollar he earns over $5,000, if John wants to live on more than $11,000 per year and he can find a minimum wage job for $8.00/hour, what is his effective wage that he would consider when deciding whether or not to work?
A. $4/hr. B. $0/hr. C. $8/hr. D. $17,000 divided by 2000 hours in a year = $8.5.
Firms in the long run do not experience diminishing marginal returns. Then why do some industries have upward-sloping long-run supply curves?
What will be an ideal response?
Refer to Figure 14.2. A movement from point a to point d could be caused by a simultaneous ________ and ________.
A. increase in government spending; decrease in the price of oil B. increase in taxes; increase in the price of oil C. decrease in taxes; massive crop failure D. decrease in the money supply; decrease in government spending
The capital-labor ratio will tend to decrease over time when
A) investment per worker equals saving per worker. B) investment per worker is less than saving per worker. C) investment per worker exceeds depreciation per worker. D) saving per worker equals depreciation per worker. E) output per worker exceeds capital per worker.