In a monopolistically competitive industry, firms which enter the market in the long run produce a close substitute and not a standardized product
a. True
b. False
Indicate whether the statement is true or false
True
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Using the data in the table above, at the price of $80 a phone,
A) a shortage of 25,000 cellular telephones occurs. B) a surplus of 80,000 cellular telephones occurs. C) a surplus of 25,000 cellular telephones occurs. D) a shortage of 55,000 cellular telephones occurs. E) the market is in equilibrium.
Refer to Figure 17-4. Which of the following is true at W2?
A) The supply curve is positively sloped. B) The income effect and the substitution effect are equal. C) The substitution effect is larger than the income effect. D) The income effect is larger than the substitution effect.
Demand is said to be ____ when the quantity demanded is very responsive to changes in price
a. independent b. inelastic c. unit elastic d. elastic
Suppose that today 1 British pound exchanges for $1.60. If next week 1 pound exchanges for $1.70, it is clear that
A. The dollar has appreciated relative to the pound. B. The pound has depreciated relative to the dollar. C. The dollar has depreciated relative to the pound. D. Both currencies have appreciated.