Which of the following makes it difficult to regulate a monopolistically competitive market?
A. There are many firms with different costs of similar products.
B. It may stifle innovation if firms can't make economic profit.
C. It is difficult to assess the costs.
D. All of the above are true.
Answer: D
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Indicate whether the statement is true or false
Markets will always create more efficient outcomes without government intervention.
Answer the following statement true (T) or false (F)
D. this amount should be included in calculating that year's GDP
A. net exports. B. government purchases. C. investment. D. consumption.
Taxes, savings, and imports tend to magnify the effect of any spending change in the economy; that is, if investment spending initially increases, then spending will grow even more as taxes, savings, and imports increase, so the economic growth will
accelerate. Indicate whether the statement is true or false