In monopolistic competition there is/are
A) only one seller who faces a downward-sloping demand curve.
B) many sellers who each face a perfectly elastic demand curve.
C) a few sellers who each face a downward-sloping demand curve.
D) many sellers who each face a downward-sloping demand curve.
D
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If the crowding-out effect is complete and the marginal propensity to save is 0.25, then an increase in government spending of $100 billion will generate how much more real GDP?
A) $0 B) $400 billion C) $25 billion D) $100 billion
The largest value the Herfindahl index can have is
a. 100, which would indicate a monopoly b. 100 for firms equal in size c. 100,000 d. 10,000 . which would indicate a pure monopoly e. infinity
If the social benefit is greater than the private benefit in a particular market, then the socially optimal equilibrium will be at a quantity:
A. greater than the private level. B. equal to the private level. C. less than the private level. D. greater than or less than the private level, depending on the size of the external costs.
Transaction costs increase the economic value of an exchange
Indicate whether the statement is true or false