For a monopolistically competitive market, the number of firms in the market implies that
A) each firm faces a perfectly elastic demand.
B) all firms will make losses.
C) each firm acts independently of other firms.
D) firms will collude to set monopoly price and output.
C
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Ongoing economic growth in real GDP per person requires all of the following EXCEPT ________
A) investment in human capital B) the discovery of new technologies C) saving and investment in new capital D) population growth
Which of the following characteristics does not fit a perfectly competitive market?
A. Numerous small firms B. Identical products produced by all firms in the market C. Each individual firm has a small amount of control over the market price D. Ease of entry and exit from the market
A successful advertising campaign would likely
a. increase price elasticity of demand by stressing the uniqueness of the product b. reduce price elasticity of demand by stressing the uniqueness of the product c. reduce price elasticity of demand by informing consumers of the availability of substitutes d. not alter the demand curve e. generally make the demand curve shift inward
The rail system in Metropolis is a natural monopoly. If the government regulates the system by setting the fare equal to marginal cost, which of the following will be true?
a. Profit will be zero under regulation. b. Only normal profit will be earned under regulation. c. Accounting profit will be zero under regulation. d. Economic loss will occur under regulation. e. Profit will be higher than if the monopoly were unregulated.