Monopolistic competition and perfect competition are different in that
A. only monopolistically competitive firms advertise.
B. only perfectly competitive firms maximize profits where marginal revenue equals marginal cost.
C. only perfectly competitive firms are characterized by long-run economic profits of zero.
D. only monopolistically competitive firms can earn economic losses in the short-run.
Answer: A
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Answer the following statements true (T) or false (F)
1. The U.S. economy is a mixture of perfect and imperfect competition and regulated and non regulated industries. 2. Self -interest is a major tenet of economic liberalism. 3. Laissez-faire is a policy of government nonintervention in the economy. 4. Laissez-faire is a policy of no government intervention in the economic activities of individuals and businesses.
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. If Alice produces 5,000 cubic yards per year, what is Kate's inverse demand function?
A. P = 75 - 0.005QK B. P = 75 - 0.005QA C. P = 150 - 0.005QK D. P = 175 - 0.005QA
Which of the following is not an argument for trade restrictions?
A) the national defense argument B) the infant industry argument C) the comparative advantage argument D) the antidumping argument
Exhibit 2-4 Production possibilities curve data A B C D E Capital goods 0 10 20 30 40 Consumer goods200 180 140 80 0 In Exhibit 2-4, if the economy chooses production possibility D rather than production possibility B, it can expect
A. less growth in the future because it will use up its consumer goods. B. more growth in the future because of the accumulation of capital. C. the same amount of growth in the future but with a lower standard of living. D. the same amount of growth in the future but with a higher standard of living.