In monopolistic competition, the number of firms
a. is so large that the actions of any one firm have little effect on the others.
b. is so small that the actions of any one firm have little effect on the others.
c. is so large that the actions of any one firm have a substantial effect on the others.
d. is so small that the actions of any one firm have a substantial effect on the others.
a. is so large that the actions of any one firm have little effect on the others.
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An increase in the demand for labor means that
A) the demand for labor increases as a result of an increase in the real wage rate. B) the demand for labor increases at any real wage rate. C) the supply of labor must also be increasing. D) the demand for labor increases as a result of a decrease in the real wage rate.
A price ceiling, such as a rent ceiling
A) always results in a surplus. B) always results in a shortage. C) results in a surplus if the ceiling price is less than the equilibrium price. D) results in a shortage if the ceiling price is less than the equilibrium price.
A leftward shift of the supply curve will lead to a(n)
A) increase in equilibrium price. B) excess demand at the old equilibrium price. C) decrease in quantity demanded. D) All of the above.
Given the scenario described, if the market price of hammers increased from $9 to $13:
Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot can offer their hammer for a minimum of $7. Lace Hardware can offer the hammer for a minimum of $10. Bob's Hardware store can offer the hammer at a minimum price of $13. A. producer surplus would increase for each producer. B. producer surplus would increase only for House Depot. C. producer surplus would remain unchanged for Bob's Hardware. D. producer surplus would increase by $4 for Lace Hardware.