In a monopolistically competitive market, the consumer receives the benefit of
A) production at minimum average cost.
B) production where price equals marginal cost.
C) product differentiation.
D) allocative efficiency.
Answer: C
You might also like to view...
A physical examination is NOT a good screening device for life insurance companies if
A) life-threatening diseases are usually undetected. B) doctors cannot be easily bribed to write a good report. C) medical history is a good predictor of life expectancy. D) one's current state of health is a good predictor of life expectancy.
Which of the following statements is false?
A) The Fed has the legal authority to create money out of thin air. B) There is a direct relationship between the money supply and the required reserve ratio. C) The Fed can cause money to disappear into thin air. D) The federal funds market is a market in which banks can borrow money from other banks.
Which of the following statements is TRUE?
A) Government spending as a percent of total national income has continuously decreased since the 1950s. B) Transfer payments are money payments made by the government for which no goods or services are currently received. C) Education is the largest category of federal government expenditures. D) Transfers in kind include Welfare, Social Security, and unemployment insurance benefits.
A perfectly competitive firm
A) sells a product that has perfect substitutes. B) has a perfectly inelastic demand. C) has a perfectly elastic supply. D) Answers A and B are correct. E) Answers A and C are correct.