Which of the following statements is correct?
a. Monopolistic competition is similar to monopoly because both market structures are characterized by firms being price makers rather than price takers.
b. Monopolistic competition is similar to perfect competition because both market structures are characterized by differentiated products.
c. Monopolistic competition is similar to oligopoly because both market structures are characterized by strategic interaction between firms in the market.
d. Monopolistic competition is similar to perfect competition because both market structures are characterized by perfectly elastic demand curves for firms.
a
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Which of the following will hold true if the market for cameras is in equilibrium at a price of $40?
A) The quantity of cameras produced will equal the quantity of cameras bought in the market. B) Sellers of cameras will have an incentive to charge a price higher than $40. C) Buyers of cameras will want to buy fewer cameras than they are purchasing at equilibrium. D) If the cost of producing cameras falls below $40 per camera, all sellers will stop supplying cameras.
Taxes
A. are mandatory payments. B. are necessary for financing government expenditures. C. do not directly relate to the benefit of government goods and services received. D. all of these answer options are correct.
Unemployed U.S. residents who are, in effect, merely searching for work between jobs, are defined as
A) frictionally unemployed. B) structurally unemployed. C) cyclically unemployed. D) seasonally unemployed.
Comparing the cost of the same basket of goods in different locations:
A. can create a price index to evaluate purchasing power across different locations. B. is based on the theory of purchasing power parity. C. can be used for international price comparisons. D. All of these statements are true.