Which of the following is NOT true of monopolistic competition?
A) Firms produce a good that is a perfect substitute for their competitors' goods.
B) There is free entry and exit.
C) There are a large number of firms.
D) Firms can compete on price and quality.
A
You might also like to view...
In the DMP model, a decrease in the unemployment insurance benefit
A) increases the unemployment rate. B) reduces labor market tightness. C) reduces the unemployment rate. D) reduces the vacancy rate.
Figure 9.6 shows an individual's demand curve for time per month spent telecommunicating while driving (talking on the car phone.) A car phone is useless except for talking with somebody who is not in the car
If calls are priced at ten cents per minute, what is the consumer surplus derived from talking? What is the most this person would pay for the car phone? Explain.
A jar has 20 red jelly beans and 40 black jelly beans. If you pick a red jelly bean and put it back, what are the odds of picking a red jelly bean next?
A) 20/40 B) 20/60 C) 40/60 D) 0
The effects of airline deregulation in the early to mid-1980s included all of the following except the
a. dropping of unprofitable routes b. development of the hub-and-spoke system c. establishment of new commuter lines d. raising of airline fares e. bankruptcy of some airlines