Monopolistic competition is associated with
A) product differentiation.
B) price-taking behavior.
C) explicit consideration at the firm level of the strategic impact of other firms' pricing decisions.
D) high profit margins in the long run.
E) increasing returns to scale.
A
You might also like to view...
Which of the following policies would be expected to increase private saving?
A. Reducing the tax rate on capital gains and dividends. B. Increasing the income tax. C. Increasing job security. D. Providing more generous Social Security retirement benefits.
If an individual's opportunity cost of commute is $300 per month and his monthly commuting time is 60 hours, his opportunity cost of time is:
A) $10 per hour. B) $5 per hour. C) $30 per hour. D) $60 per hour.
In the neoclassical growth model without technological progress, the steady-state growth rate of per capita output is
a. the growth of technology plus the growth of population. b. the growth of population. c. the growth of technology. d. the growth of technology plus population plus depreciation.
The best economic theory is the one
a. whose assumptions most closely match reality b. that yields the most accurate predictions c. that most simply represents reality d. that most closely matches the conscious behavior of economic decision makers e. that includes the most details