Under monopolistic competition:
A. firms can sell all the output they wish without affecting the price.
B. a single seller serves the market.
C. firms face a downward-sloping demand curve.
D. firms have no monopoly power.
Answer: C
You might also like to view...
Refer to the figure above. What is the domestic production of pens in Lithasia, after the economy opens up to free trade?
A) 6 units B) 12 units C) 16 units D) 22 units
What is the main difference between monopolistic competition and monopolies?
What will be an ideal response?
Credit cards are:
a. M1 money. b. M2 money. c. near money. d. not money.
The economy moves from point A, where it produces 100 units of X and 200 units of Y, to point B, where it produces 200 units of X and 150 units of Y. It follows that
A) point A is a productive inefficient point. B) point A may be a productive inefficient point. C) point A may be a productive efficient point. D) point B is a productive efficient point. E) b and c