Monopolistic competition describes a situation where:
a. a few firms produce a standardized product
b. a large number of firms produce differentiated products.
c. a few firms produce differentiated products.
d. there are substantial barriers to entry.
b
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Which one of the following industries could be classified as an oligopoly?
A) Tobacco production B) Retailing C Farming D) Fast food restaurants
GoodPrice Increase Last YearAmusement park tickets5.0%Bowling balls4.2%Camouflage neckties3.1% Refer to Table 8.1, which gives hypothetical data on price changes for three goods. If the overall rate of inflation in the economy was 3.5%, which good(s) experienced a relative price increase?
A. Amusement park tickets only B. Amusement park tickets and bowling balls C. All three goods experienced relative price increases D. Camouflage neckties only
According to the interest rate effect, a decrease in the price level will
A. decrease the real value of money balances, which causes total planned real expenditures to increase. B. cause interest rates to fall, which generates an increase in borrowing, so that total planned real expenditures increase. C. increase the real value of money balances, which causes interest rates to increase, thereby reducing total planned expenditures. D. lead to a decrease in net exports, which causes total planned real expenditures to decrease.
Wilbur's Widgets, a widget company, produces 100 widgets. Its average fixed cost is $5 and its total variable cost is $300. What is the total cost of producing 100 widgets?
A. $300 B. $305 C. $500 D. $800