The feature that distinguishes perfect competition from monopolistic competition is that perfectly competitive firms are
A. able to block the entry of other firms.
B. unable to differentiate their products.
C. price takers.
D. large relative to the market.
Answer: B
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At any given time, which factor of production is NOT fixed?
A) labor B) technology C) entrepreneurship D) land E) money
Except for the case of Giffen goods, the substitution effect always tells us that a consumer will consume less (or at least no more) of a good whose price has increased.
Answer the following statement true (T) or false (F)
Suppose the banking system as a whole has $600 billion in deposits and $66 billion in reserves, with a reserve ratio of 11 percent. What happens to the stock of money if the Fed lowers reserve requirements by changing the reserve ratio to 10 percent?
From an isoquant map, one can illustrate diminishing returns to production by
A. constructing a positively sloped isoquant. B. moving from isoquant to isoquant along a ray from the origin. C. observing the slope of the isoquant as one moves outward on the labor axis but stays at the same point on the capital axis. D. following the curvature of an individual isoquant.