The product-variety externality arises in monopolistically competitive markets because
a. firms produce with excess capacity.
b. firms try to differentiate their products.
c. firms would like to produce homogeneous products, but the large number of firms prohibits it.
d. entry and exit is restricted.
b
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Keynes used the term "animal spirits" to refer to
a. policy makers harming the economy in the pursuit of self interest. b. arbitrary changes in attitudes of household and firms. c. mean-spirited economists who believed in the classical dichotomy. d. firms' relentless efforts to maximize profits.
There are ________ between the risks individuals expose one another to and the risks corporations expose their customers to
A) major differences B) no fundamental differences C) only financial differences D) significant, but relatively minor differences
Opportunity costs differ among nations primarily because
a. nations employ different currencies. b. nations have different amounts of land, labor skills, capital, and technology. c. nations have different religious, political, and economic institutions. d. the work-leisure preferences of people vary considerably from one nation to another.
In 1971, President Nixon concluded the_______ era in this country by ____________
Fill in the blank(s) with the appropriate word(s).