Which of the following industries is most likely to represent the monopolistic competition market structure?
A) automobiles
B) tobacco products
C) restaurants
D) farm equipment
C
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Even if the population declines, scarcity will still exist
Indicate whether the statement is true or false
The requirement that certain professionals possess a license in order to work in a particular market has the effect of reducing the supply of those services, which in turn causes:
A) price and the profits of firms in the market to increase. B) price and the profits of firms in the market to decrease. C) price to increase and the profits of firms in the market to decrease. D) price to decrease and the profits of firms in the market to increase.
Suppose the price of a product is reduced from $10 to $6 and the quantity demanded increases from 40 to 60 units. From this we can conclude that the price elasticity of demand over this price range is equal to _____
a. 1.2 b. 1.25 c. 0.80 d. 0.20 e. 0.5
Stocks of finished goods and raw materials that firms keep in reserve to facilitate production and sales are
a. inventory investment b. personal consumption c. capital depreciation d. net national product e. durable goods