In the short run, a monopolistic competitor can
a. not earn an economic profit because of competition
b. use limit pricing to reduce competition
c. maximize profits by charging the highest price the market will bear
d. earn an economic profit
e. maximize profit by selecting the minimum efficient scale
D
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Providing housing decreases the incentive for the poor to find their own.
A. True B. False C. Uncertain
The more inelastic the demand for a product, the more the actual burden of a tax on the product will:
a. fall on sellers. b. fall on buyers. c. fall equally on both buyers and sellers. d. create a larger deadweight loss (or excess burden).
Diminishing returns to labor occur for two primary reasons: 1) as we keep adding new workers, it becomes increasingly difficult to obtain productivity gains through additional specialization; and 2) each additional worker we add has less land and capital to work with
a. True b. False
The market structure that is most different from the model of perfect competition is:
A) monopolistic competition. B) monopsony C) oligopoly. D) monopoly.