Why is collusion about the price and amount of output impossible in monopolistic competition?
What will be an ideal response?
The smaller the number of firms, the more likely collusion is to occur. Monopolistic competition has too many firms for collusion to be successful.
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The price of ________ in terms of ________ is referred to as the real exchange rate
A) foreign goods; foreign services B) domestic goods; the domestic currency C) domestic goods; foreign goods D) domestic goods; domestic services
Which of the following sayings best reflects the concept of opportunity cost?
What will be an ideal response?
According to Matthew Slaughter, as reported in the Case in Point on outsourcing, which of the following is a reason that suggests outsourcing might actually increase domestic employment?
A) Reduced costs make domestic firms more likely to expand the quantities they produce. B) Lower costs may lead firms to increase the scale of their operations which could generate more domestic employment. C) A firm that engages in outsourcing is likely to increase its scope of operations. D) all of the above
According to the text, the portion of total U.S. national income spent on health care was about ________ in 2015 as opposed to about ________ in 1965.
A. 34 percent; 17 percent B. 17 percent; 6 percent C. 17 percent; 34 percent D. 6 percent; 17 percent