Monopolistic competition is a market structure in which
A) firms produce and sell products for which there are no close substitutes.
B) the demand curve for a typical firm is horizontal.
C) firms cannot influence the market price.
D) barriers to entry are low.
Answer: D
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________ occurs when a foreign firm sells its exports at a lower price than it costs to produce the goods
A) Dumping B) Comparative advantage C) Learning-by-doing D) A tariff
In a competitive price taker market, a firm's short-run supply curve is its
a. average total cost curve above its average variable cost curve. b. marginal cost curve above its average variable cost curve. c. marginal cost curve above its average fixed cost curve. d. entire marginal cost curve.
A production possibilities frontier shifts outward when
a. the economy experiences economic growth. b. the desires of the economy's citizens change. c. at least one of the basic principles of economics is violated. d. opportunity costs are lessened.
Contraction of the money supply can aggravate a recession.
Answer the following statement true (T) or false (F)