Monopolistically competitive markets differ from perfectly competitive markets due to (i) the number of sellers. (ii) the barriers to entry. (iii) the product differentiation among the sellers
a. (i) only
b. (iii) only
c. (i) and (iii) only
d. (ii) and (iii) only
b
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In an open economy with a given level of real interest rates and risk, a decrease in real interest rates abroad will ________ capital inflows and ________ the equilibrium domestic real interest rate.
A. increase; decrease B. decrease; increase C. decrease; decrease D. increase; increase
The effects of a decrease in export demand
A) is a powerful argument in favor of fixed rates. B) is a powerful argument in favor of flexible rates. C) shows the difficulties in determining which exchange rate is better. D) is a powerful argument in favor of fixed rates only in the short run. E) is a powerful argument in favor of fixed rates only in the long run.
Researchers find that the income elasticity of poultry demand in Indonesia is 1.2. This implies that if income is expected to grow at 5%, then projected demand for poultry will:
a. Increase by 5% b. Increase by 6% c. Increase by 6.2% d. Increase by 4.2%
Surveys of consumers regarding labor standards indicate that they are willing to pay:
a. a large amount for a large improvement in working conditions. b. a small amount for a large improvement in working conditions. c. nothing for a large improvement in working conditions. d. a small amount for a small decline in working conditions.