Which of the following is a characteristic of monopolistic competition?
A) few firms
B) homogeneous products
C) easy entry and exit
D) strategic dependence
Answer: C
You might also like to view...
Which of the following is not included in gross domestic private investment, as defined in national income accounts?
A. The value of all new capital goods bought by business firms B. Changes to business inventories C. Domestic home construction undertaken by and for the private sector D. Government construction of new highways and dams
Economic profit equals gross earnings minus the firm’s direct costs.
Answer the following statement true (T) or false (F)
Which of the following is most accurate about the period between the Civil War and World War I?
a. An increasing share of the U.S. population lived in rural areas. b. Unions pursued strategies of peaceful negotiation with employers. c. The average number of hours of work increased significantly during the period. d. The difference between male and female wages decreased.
Kyle receives two free passes to the symphony as a bonus at work. He has never been to the symphony before and would probably not buy such tickets for their face value of $120. Kyle decides to use the tickets rather than sell them at face value. This type of behavior is:
A. irrational, since Kyle would not pay $120 for the tickets, yet gives up $120 by not selling them. B. rational, since Kyle can check out the symphony and not have to pay for it himself. C. irrational, since Kyle ignores his sunk cost of $120. D. rational, since Kyle does not ignore his sunk cost of $120.