The basis for monopolistic competition is
A. product differentiation.
B. price.
C. economies of scale.
A. product differentiation.
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Many industries are regulated in the United States, from railroads and electric utilities to cable TV
a. True b. False Indicate whether the statement is true or false
People earn an income by selling their resources or by using them. Owners of land receive _____, while the owners of capital receive _____.
(a) rent; profit (b) wage; profit (c) profit; rent (d) rent; interest (e) interest; profit
The major economic effect of Medicare subsidies is
A. that the number of physicians has decreased since compensation is low. B. to lower the price of medical services and reduce the quantity demanded. C. to increase the price of medical services and increase the quantity demanded. D. to increase the price of medical services and reduce the quantity demanded.
If firms in a monopolistically competitive industry are operating with economic losses, over time we would see
A. some firms exiting the industry, causing the market supply curve to shift to the left, raising price. B. some firms exiting the industry, causing the demand curves of the remaining firms to shift to the right. C. firms alter their advertising rates until they made at least normal profits. D. the firms working together to increase price and everyone's profitability.