Keely says that he's glad that his morning coffee is sold in a monopolistically competitive market rather than a purely competitive market. If this is true for most things Keely buys, it suggests that he
A) cares most about allocative efficiency.
B) is willing to pay extra for product variety.
C) is most concerned about paying the lowest price possible.
D) is a creature of habit who always buys the same type of a particular good.
Ans: B) is willing to pay extra for product variety.
You might also like to view...
A country that is borrowing more from the rest of the world than it is lending is called a
A) net debtor. B) net loaner country. C) net lender. D) net borrower. E) net creditor.
Improved quality in health care services is partly responsible for increases in health care costs in the United States
Indicate whether the statement is true or false
Lucy works as a college instructor for a fixed annual salary of $30,000. She is considering quitting this job and becoming a real estate broker
Lucy believes that as a realtor she has a 40 percent chance to make $60,000 per year and a 60 percent chance to make $25,000 a year. The figure above shows Lucy's total utility of wealth curve (U). Lucy will decide to ________ and she will definitely make this choice because it gives her a greater expected ________. A) keep her current job; income B) keep her current job; utility C) quit her job and become a realtor; utility D) quit her job and become a realtor; income
Compared to perfect competition, a monopoly usually does not result in
a. higher prices. b. the use of fewer resources. c. a less elastic demand curve. d. less profit.