Entry into a market characterized by monopolistic competition
A. Is frequent because barriers to entry are low.
B. Occurs when a firm's demand is everywhere below its long-run average cost curve.
C. Is rare because firms have market power.
D. Results from economies of scale.
Answer: A
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Barbara buys the same market basket each week and spends $60 on it. This week Barbara brought $60 to the store but could not buy her usual market basket. One explanation for this is ________.
A. she became unemployed B. there was an increase in real GDP C. the GDP price index has decreased D. there was inflation
Investment, as included in GDP, consists of what?
What will be an ideal response?
Ricardian view on debt is that the form of government finance is irrelevant.
A. True B. False C. Uncertain
If a monopolist produces to a point at which marginal revenue is less than marginal cost then
A) profits are being maximized. B) profits will always be negative. C) the incremental cost of producing the last unit exceeds the incremental revenue. D) the incremental cost of producing the last unit is less than the incremental revenue.