Monopolistically competitive firms have a "monopoly" element to them because
A. There is only one seller.
B. The cross-price elasticity is very high.
C. Brand loyalty gives them a captive audience.
D. There are high barriers to entry.
Answer: C
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The law of demand tells us that people will buy more of a good if
A) the price of that good decreases. B) the prices of other goods decrease. C) people's income increases. D) every factor that can affect people's buying decisions changes.
If the price effect outweighs the income effect of a wage increase, the quantity of labor supplied will:
A. increase. B. decrease. C. remain the same. D. be negative.
A high HHI indicates that a market may be dominated by one large firm
Indicate whether the statement is true or false
A market structure with barriers to entry is
a. a monopoly. b. oligopolistically competitive. c. monopolistically competitive. d. perfectly competitive.