Monopolistic competition is like perfect competition in that they both experience?
a. downward sloping demand curves
b. product differentiation
c. easy entry and exit from the market thus eliminating long-run profits
d. barriers to production to keep other market participants out in the long run
c
You might also like to view...
A perfectly competitive firm breaks even at the level of output where
A) P > ATC B) P < ATC C) P = ATC D) P = MC
When the price is $5
A. quantity supplied is greater than quantity demanded and, therefore, price must rise to get to equilibrium.
B. quantity supplied is greater than quantity demanded and, therefore, price must fall to get to equilibrium.
C. quantity demanded is greater than quantity supplied and, therefore, price must rise to get to equilibrium.
D. quantity demanded is greater than quantity supplied and, therefore, price must fall to get to equilibrium.
A decrease in the demand for recreational fishing boats might be caused by an increase in the:
A. income of sports fishers. B. price of outboard motors. C. size and number of fish available. D. price of sailing boats.
Refer to the graph shown. With a tariff on lumber imported from Canada of $6 per ton, the revenue the government would collect from the import of lumber would be:
A. $3,600. B. $4,800. C. $4,200. D. $0.