Firms in perfect competition sell differentiated products
Indicate whether the statement is true or false
False
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For the purpose of GDP accounting, consumption expenditures include
A) only durable goods. B) only nondurable goods. C) both nondurable goods and services. D) durable goods, nondurable goods, and services.
The substitution effect of wages states that a decreased wage rate
A. Will shift the labor supply curve rightward. B. Will lead to a movement up along the existing supply curve. C. Encourages people to consume less leisure. D. Encourages people to work less hours.
Alan Krueger conducted a survey of fans at the 2001 Super Bowl who purchased tickets to the game for $325 or $400. Krueger found that (a) 94 percent of those surveyed would not have paid $3,000 for their tickets, and (b) 92 percent of those surveyed
would not have sold their tickets for $3,000. These results are an example of A) the tendency of people to be unwilling to sell a good they already own even if they are offered a price that is greater than the price they would be willing to pay if they did not already own it. B) the tendency for consumers to account for monetary costs but to ignore sunk costs. C) consumers placing a high value on a product because it makes them appear to be fashionable. D) the law of demand.
The soft-drink and automobile industries would be examples of which market model?
A. Monopolistic competition B. Pure competition C. Pure monopoly D. Oligopoly