Answer the following questions true (T) or false (F)
1. Monopolistic competition differs from oligopoly in that in monopolistic competition firms act independently while in oligopoly firms act interdependently.
2. An entry barrier exists when firms in an industry charge the lowest price possible for their products.
3. If economies of scale are significant, the typical firm will not reach the minimum point on its long-run average cost curve until it has produced a large fraction of industry sales.
1. TRUE
2. FALSE
3. TRUE
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A homeowner making a mortgage payment is paying
A) a sunk cost which is consequently not a genuine cost at all. B) the cost of borrowing to purchase the house. C) the cost of constructing the house. D) the cost of purchasing the house. E) the cost of retaining ownership of the house.
The above table shows Homer's total utility from boxes of doughnuts. As Homer's consumption of doughnuts increases
A) both his total utility and his marginal utility increase. B) his total utility increases, but his marginal utility decreases. C) his total utility decreases, but his marginal utility increases. D) both his total utility and his marginal utility decrease.
To be considered employed, a person must have
a. worked at least 1 hour during the previous week b. searched at least 1 hour for a job during the previous week c. worked at least 5 hours during the current week d. worked at least 15 minutes during the previous month e. earned at least the minimum wage for five or more hours of work per week
The marginal propensity to save is:
A. Equal to (1 + MPC). B. The fraction of each additional dollar of saving that goes to the stock market. C. The fraction of each additional dollar of disposable income that goes to saving. D. (Total savings) รท (total disposable income).