Which of the following is true of a typical firm in a monopolistically competitive industry?
A) All firms have identical cost structures.
B) Product differentiation allows a successful firm to emerge as a market leader in the industry.
C) Each firm acts independently.
D) The more successful firms have an incentive to merge in order to exert greater market power.
C
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Refer to Reducing Long-Run Labor Usage. The scale effect of the wage change is the movement from point
a. X to point A.
b. X to point B.
c. B to point C.
d. C to point D.
Changing the labels on isoquants without changing the shapes of the isoquants implies no change in the underlying technology so long as the ordering of isoquants is preserved.
Answer the following statement true (T) or false (F)
The market price of one currency in terms of another currency is also known as
A) the exchange rate between those currencies. B) the future rate between those currencies. C) the spot market. D) the value of arbitrage.
In order for a taxicab to be operated in New York City, it must have a medallion on its hood. Medallions are expensive, but can be resold, and are therefore an example of
A) a fixed cost. B) a variable cost. C) an implicit cost. D) an opportunity cost. E) a sunk cost.