What are the implications of there being a large number of firms in a monopolistically competitive market?
What will be an ideal response?
A large number of firms has three implications. (1 ) Each firm will have a small share of the market since there are many firms. (2 ) There will be a lack of collusion among the firms because the large number will make it impossible for the firms to agree on price and output decisions. (3 ) Each firm will act independently from their competitors since they cannot take into account how their numerous competitors will react to changes in their behavior.
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The data in the table above give two points on the demand curve for pizza. Using the midpoint method, when the price of a pizza falls from $10 to $9, what is the percentage change in the quantity demanded?
A) 22.2 percent B) 10.0 percent C) 15.5 percent D) 5.2 percent E) 25 percent
The mean and variance of a Bernoille random variable are given as
A) cannot be calculated B) np and np(1-p) C) p and D) p and (1- p)
Who most clearly gains from a tariff on imports?
a. Consumers in the importing country b. Producers in the exporting country c. The government in the exporting country d. Producers in the importing country
Based on the graph showing U.S. health care expenditures as a percentage of GDP, during which period did health care expenditures rise the most?
a. 2002 to 2006
b. 2006 to 2009
c. 2009 to 2013
d. 2013 to 2016