In a monopolistically competitive market, entry into the industry

A) is relatively easy.
B) is blocked.
C) is difficult due to extensive government regulation.
D) is as difficult as entry into a monopoly.


Answer: A

Economics

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Referring to the previous question, as a result of the consumer's adjustment to the change in the price of Y, assuming Y is a normal good and X and Y are complements, it is reasonable to expect that the amount of Y consumed will ________, and the

amount of X consumed will ________: A) increase; decrease B) decrease; decrease C) increase; increase D) cannot be determined; cannot be determined

Economics

When economists describe the theory of consumer choice, they

a. portray people as simple and methodical with perfectly predictable patterns of behavior. b. assert that consumer's decisions are based on which goods and services give them the greatest utility within their limited incomes. c. point out that consumers rarely consider utility in their purchase decisions; they look at other factors like convenience, peer behavior, and price. d. assert that the retail price is the only variable consumers really consider in making their purchasing decisions. e. admit that consumer behavior is random and there is no credible economic theory to explain the phenomenon.

Economics

Which of the following items is a final good?

A) mustard in a deli B) tin purchased by a tin can company C) a sweater purchased by someone in a department store D) a and b E) a, b, and c

Economics

Suppose that the absolute price elasticity for cookies equals 0.8. We could then say that the demand for cookies is

A) elastic. B) inelastic. C) unit-elastic. D) perfectly elastic.

Economics