The product-variety externality and the business-stealing externality are both spillover costs of new firms entering a monopolistically competitive market
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Which of the following is a possible outcome of a minimum wage imposed by a government? a. It leads to an increase in consumer surplus
b. It favors women and children and helps improve their standard of living. c. It eradicates the problem of unemployment from the market. d. It creates a labor surplus or unemployment. e. It creates a labor deficit.
??Exhibit 16A-2 Macro AD/AS Models
?
?In Panel (a) of Exhibit 16A-2, an expansionary Keynesian government stabilization policy designed to move the economy from Y1 to Yp would shift the:
A. ?aggregate demand curve (AD)to the left. B. ?aggregate demand curve (AD) to the right. C. ?SRAS rightward. D. ?LRAS rightward.
Game theory is the study of decision making in situations where strategic interaction occurs between rivals.
Answer the following statement true (T) or false (F)
Television stations have seemingly synchronized their commercial breaks. This is likely an example of
A) tacit collusion. B) explicit collusion. C) mixed strategies. D) pure strategies.