In contrast to perfect competition, in a monopolistically competitive industry:
a. new firms entering the market produce a good that is identical to the existing ones.
b. new firms entering the market produce a completely different product.
c. there are legal restrictions on the entry of new firms.
d. new firms entering the market produce a close substitute, not an identical or standardized product.
e. new firms are allowed to enter the industry but there are legal restrictions on their exit.
d
You might also like to view...
The increase of ice cream sales and property crime rates at the same time shows which of the following?
a. one variable causing another variable b. two variables being caused by a third variable c. three variables having no connection between them d. two variables being caused by two other variables
Which of the following is included in the aggregate demand for goods and services?
a. consumption demand
b. investment demand
c. net exports
d. All of the above are correct.
A market failure that causes overconsumption of a product because the sellers know something negative about a product that the buyers do not know is called
A. imperfect information. B. collusion. C. regulatory capture. D. deadweight loss.
Which of the following would cause an increase in the market supply of drones?
A) a decrease in the demand for drones B) an increase in taxes levied on drones C) an increase in the cost of components used to make drones D) an increase in the number of firms making drones