In monopolistic competition, we usually observe:
A. slower rates of technological advance and product development due to higher advertising costs.
B. significant diseconomies of scale.
C. more reliance on misleading advertising than in monopoly or oligopoly.
D. a large number of firms, each operating with excess capacity.
Answer: D
You might also like to view...
An organization of employees that has the legal right to bargain with employers about wages and working conditions is called a
A) labor union. B) guild. C) monopsony. D) closed shop.
A monopolist will hire fewer workers than a perfectly competitive firm because
A) the marginal product curve decreases as additional units of labor are hired for a monopoly but not for a competitive firm. B) there is a variety of employers in a competitive market and only one in a monopoly. C) marginal revenue is greater than price for a monopoly while marginal revenue is equal to price for a competitive firm. D) to sell an additional unit of the good the competitive firm will keep the price the same while the monopolist must lower it on all units sold.
If the demand curve is unit elastic, this implies that:
a. consumers do not react to a change in product price. b. the good can only be purchased in units of 1. c. this good has no good substitutes. d. the good is a basic food staple. e. the percentage change in the quantity demanded = the percentage change in product price.
Economists usually suggest that the best way to examine the deficit is by expressing it:
A. as a percentage of GDP. B. in real terms. C. in nominal terms. D. None of these is true.