The definition of monopolistic competition includes
A. few firms and ease of entry and exit.
B. few firms and barriers to entry and exit.
C. many firms and barriers to entry and exit.
D. many firms and ease of entry and exit.
D. many firms and ease of entry and exit.
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Hannah and Chris each like jewelry and music by the Rolling Stones. If we were to graph an indifference curve with jewelry on the horizontal axis and CDs by the Rolling Stones on the vertical axis, then
a. Hannah and Chris would have identical indifference curves. b. Hannah's indifference curve would be higher than Chris's indifference curve. c. Chris's indifference curve would be higher than Hannah's indifference curve. d. Because we do not know the intensity of each woman's preferences, we do not have enough information to compare their indifference curves.
The underlying reason why the expected future price of gasoline plays an important role in the current price of gasoline is because
A. the government is in complete control of the energy market. B. along the supply chain, firms want to hold onto gasoline when they think the price is about to rise and sell it quickly when they think the price is about to fall. C. the market is overly regulated. D. the market is governed by two major players.