In the monopolistic competition model
a. firms are price takers
b. barriers to entry maintain some monopoly "rents" in the long run.
c. one dominant firm acts as the monopolist that is followed by the fringe of competitors.
d. none of these.
d
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If Italy can produce grapes at a lower opportunity cost than any other nation, Italy is said to have a(n) ________ in the production of grapes
A) comparative disadvantage B) autarky C) comparative advantage D) absolute advantage
Refer to Figure 21.2. Which country has the more unequal distribution of income?
A) Urbania B) Ruratania C) They may have the same absolute income distribution although their relative income distribution is different. D) There is insufficient information to answer the question.
Which of the following is not an advantage of starting a new business as a proprietorship?
A) A proprietorship has few government rules and regulations to comply with. B) The owner has complete control over the business. C) Business profits are only taxed once, not twice. D) A proprietorship can easily attain additional funding.
Under a managed float system, central banks can
A) allow international reserve changes. B) let exchange rates adjust to market pressure. C) experience reserve changes and exchange rate changes. D) All of the above.