The demand curve for a monopolistic competitor is likely to be flatter than that of a monopolist
a. True
b. False
Indicate whether the statement is true or false
True
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In perfect competition, ________
A) there are restrictions on entry into the market B) firms in the market have advantages over firms that plan to enter the market C) only firms know their competitors' prices D) there are many firms that sell identical products
The three most important international financial centers today are
A) London, Tokyo, and Beijing. B) Tokyo, London, and New York. C) New York, Los Angeles, and London. D) San Francisco, Paris, and Mexico City.
Which of the following statements about rent seeking is false?
A) A person is engaging in rent-seeking behavior when he uses the political process to acquire ownership of a resource that belongs to the public. B) If a firm can benefit from government intervention in the economy, it is more likely to spend resources attempting to secure this intervention than toward innovating its product to gain a competitive edge in the market. C) Because rent seeking redistributes society's resources, anyone engaging in such behavior is violating the law. D) Rent seeking often involves governments because governments transfer huge amounts of funds that economic agents must compete for.
Explain: “An effectively regulated natural monopoly will have trouble attracting capital to sustain and modernize its facilities.”
What will be an ideal response?