When an industry has many firms, the industry is
a. an oligopoly if the firms sell differentiated products, but it is monopolistically competitive if the firms sell identical products.
b. an oligopoly if the firms sell differentiated products, but it is perfectly competitive if the firms sell identical products.
c. monopolistically competitive if the firms sell differentiated products, but it is perfectly competitive if the firms sell identical products.
d. perfectly competitive if the firms sell differentiated products, but it is monopolistically competitive if the firms sell identical products.
c
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In the long run, firms in monopolistic competition earn zero economic profit because
A) firms are free to enter and exit. B) their products are similar but slightly different. C) of over-reliance on product marketing. D) of collusion among the various sellers. E) their demand curves are horizontal.
Tariffs and import quotas both decrease the amount of a good consumed and raise the price paid by domestic residents for the good
Indicate whether the statement is true or false
What is the labor force? Employed 1000 Unemployed 500 Not in labor force 600
What will be an ideal response?
If bagels and cereal are substitutes, then the cross-price elasticity of demand between bagels and cereal will be:
A. greater than zero. B. less than zero. C. greater than one. D. less than one.