Which of the following real-world situations is the result of excess capacity in a monopolistically competitive market?
A. A factory producing women's clothing produces more than it can sell during a season.
B. Monopolistically competitive firms do not exist in the real world.
C. Gas stations with infrequently used pumps are located at all four corners of an intersection.
D. A retail auto tire store orders too much inventory.
Answer: C
You might also like to view...
The changing of government expenditures or taxes to achieve national economic goals is
A) inflationary fiscal policy. B) automatic fiscal policy. C) recessionary fiscal policy. D) discretionary fiscal policy.
DVDs can be produced at a constant marginal cost of $10 per disk, and Roaring Lion Studios is releasing the DVDs for its last two major films. The DVD for Rambeau 17 is priced at $20 per disk, and the DVD for Schreck 10 is priced at $30 per disk
What are the Lerner indices for these two movies? A) Both equal one. B) 2 and 3, respectively C) 0.5 and 0.67, respectively D) 1 and 2, respectively
Excess supply of a product exerts ___________pressure on prices
a. Zero b. No c. Upward d. Downward
Markets do not ensure that the air we breathe is clean because
a. clean air has no value. b. the government prevents markets from doing so. c. property rights are not well established for clean air. d. clean air is impossible to produce .