A characteristic of monopolistic competition is that each firm
A) faces perfectly elastic demand.
B) faces a downward-sloping demand curve.
C) has a perfectly elastic supply.
D) has a perfectly inelastic supply.
B
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Given the information in Figure 18.1, the competitive output in the corbomite industry is:
A) Q0. B) Q1. C) Q2. D) any level as long as price is P0.
The biggest benefit to members of a union is:
A. being able to bargain as a group. B. keeping non-union workers out of their industry. C. negotiating minimum wage legislation. D. getting raises without having to do any work.
An expansionary monetary policy causes interest rates to _____________________, and eventually United States net exports ____________ causing the AD curve to shift to the ___________________
A) fall; rise; right B) fall; fall; left C) rise; rise; right D) rise; fall; left E) rise; rise; left
Adverse selection is the process by which
A. full-disclosure becomes impossible. B. adversaries communicate negative messages. C. "undesirable" members of a particular market are less likely to participate in exchange. D. "undesirable" members of a particular market are more likely to participate in exchange.