Which of the following is not true of monopolistic competition?
a. There are a large number of buyers and sellers.
b. The firms produce differentiated products.
c. There exists free entry and exit of firms.
d. Each of the firms faces a horizontal demand curve.
e. Each of the firms acts as a mini monopoly in the market.
d
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Even if there are significant barriers to entry, firms may not be highly profitable
a. Substitute product offerings among rivals b. The ability of consumers to switch to substitute products easily c. All of the above d. None of the above
The implementation of choice architecture that alters people's behavior in a deliberate and predictable way without changing economic incentives much is called:
A. influencing through choice. B. nudging. C. shifting. D. baiting.
A market supply curve shows how the total quantity supplied of a good varies as
a. production technology varies. b. price varies. c. input prices vary. d. demand varies.
Proponents of income redistribution argue that redistribution
A. will not take place absent government intervention as the market for charity, a private good, is imperfect. B. would be agreed to by all members of society if they were risk-loving and contracting from the "original position." C. increases the welfare of all members of society. D. helps those who, through no fault of their own, are unable to earn an adequate income.