Characteristics shared by monopolistically competitive markets and monopoly markets include:
a. strategic interactions among sellers
b. many sellers.
c. firms facing a downward-sloping demand curve.
d. insignificant barriers to entry.
c
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When the price of oranges increases from $4 to $6 per bag, the quantity demanded of oranges decreases from 800 bags to 700 bags. The price elasticity of demand over this price range is equal to
A) 3. B) 3/7 or 0.4286. C) 1/3 or 0.3333. D) 1/4 or 0.25.
Refer to Figure 3-1. An increase in the price of a substitute would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
In the long run, monetary and fiscal policies have no control over
A) the unemployment rate B) nominal GDP. C) the inflation rate. D) the interest rate
The place or point where independent systems or diverse groups interact is called the:
a. Interface b. Seam c. Subsystem d. Boundary