In the context of market structure, the characteristic that best describes a monopolistically competitive market is that:
a. there are few firms in the market.
b. the products produced cannot be easily differentiated.
c. entry and exit are both difficult.
d. firms spend a great deal on advertising and promotion.
e. firms spend very little on advertising and promotion.
d
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Which of the following is NOT similar between monopolistic competition and perfect competition?
A) Many firms compete in the market. B) It's easy to enter the market. C) The firms have downward sloping demand curves. D) The firms might incur economic losses in the short run. E) In the long run, the firms earn zero economic profit.
The budget constraint 12,000 = 2X + 4Y has a slope equal to –2 where Y is on the vertical axis
Indicate whether the statement is true or false
Dividing (P x Q) by V2 times gives:
a. A stock value b. A flow value. c. Neither a stock nor a flow value. d. Real GDP
The cross-price elasticity of two goods is -2. This tells us the two goods are:
A. complements. B. substitutes. C. inelastic. D. unrelated.