Monopolistic competition is characterized by a:
A. few dominant firms and low entry barriers.
B. large number of firms and substantial entry barriers.
C. large number of firms and low entry barriers.
D. few dominant firms and substantial entry barriers.
Answer: C
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The most notable surfaced road of the 19th century, ___________, was built using federal government funds
a. the Cumberland Road b. the Wilderness Road c. the Natchez Trail d. the Forbes Road
The short run is the time period during which
a. all of the firm's costs are fixed. b. the value of the firm's assets starts to decay. c. the firm can adjust all inputs freely. d. some of the firm's input decisions are constrained by previous commitments.
A labor intensive production process is one in which:
A. total costs will be minimized if labor is the primary factor of production used. B. a part of the production process must be done by labor and cannot be substituted. C. highly skilled labor is needed to produce the good. D. a lot of labor is hired relative to the total inputs needed to produce the good.
Provide an example of a positive externality and explain: 1) why it should be considered a positive externality and 2) what could be done in order to internalize the externality.
What will be an ideal response?