In both monopolistically competitive and perfectly competitive industries
A) firms produce products for which there are no close substitutes.
B) firms are price takers.
C) there are high barriers to entry.
D) there are many buyers and sellers.
D
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While taxing inelastic goods minimizes social costs from taxation, it frequently conflicts with traditional notions of fairness
a. True b. False
If marginal cost is increasing, average total cost must be increasing
Indicate whether the statement is true or false
The market value of all final goods and services in an economy produced by resources owned by people of that economy, regardless of where the resources are located, is
a. gross domestic product b. gross national product c. net national product d. national income e. gross private domestic investment
What does it mean to "monetize the deficit"? Why is it important in discussions of fiscal policy? Use an appropriate diagram to illustrate your answer