What is "competitive" about a monopolistically competitive market?
What will be an ideal response?
A monopolistically competitive market has many sellers and buyers and each monopolistically competitive firm can freely enter or exit the market, which in the long run leads to a zero economic profit for all existing firms in the market.
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Which statement is consistent with the economic way of thinking?
A) Politicians seek to advance their own interests. B) Politicians are not only concerned with money and material goods. C) Politicians do not necessarily pursue narrow or selfish goals. D) All of the above. E) None of the above.
Assume a nation's current production possibilities are represented by the curve AB in the above diagram. Economic growth would best be indicated by a:
A. Shift in the curve from AB to CD
B. Shift in the curve from AB to EF
C. Movement from point 1 to point 2
D. Movement from point 3 to point 4
A college must decide if it wants to offer more evening and weekend classes. This decision involves answering the economic question of "for whom to produce."
Indicate whether the statement is true or false
A ________ is a transaction in which both a spot transaction and a forward transaction are agreed upon simultaneously
A) arbitrage B) call C) swap D) put