Monopolistic competition is efficient when compared to
A) perfect competition.
B) complete product uniformity.
C) the short run.
D) the long run.
E) None of the above answers is correct.
B
You might also like to view...
Which of the following is not a cost posed by inflation?
A) Firms must pay for changing prices on products and printing new catalogs. B) The money that consumers and firms hold loses its purchasing power. C) Banks can lose if they under predict inflation and charge an interest rate that does not completely compensate for inflation. D) Inflation reduces the affordability of goods and services to the average consumer.
Economies of scale is another term for
A. increasing returns to scale. B. constant returns to scale. C. increasing marginal physical productivity. D. decreasing returns to scale.
Consider an Edgeworth economy where there are two citizens, Mr. Cortopassi and Ms. Thomas. There are only two goods to be consumed in the economy, Beer and Pretzels. The total amount of Beer is 12 units. The total amount of Pretzels is 12 units. Answer the following: Suppose Mr. Cortopassi has utility for the two goods characterized as U C (B,P) = B + P. Ms. Thomas's utility function is U T (B,P) = B + P. Identify the points that are Pareto efficient.
What will be an ideal response?
According to the capture hypothesis of regulation
A) regulation favors producers over consumers because the producers were able to pay off the regulators. B) regulation eventually favors producers over consumers because the producers have more at stake than individual consumers. C) regulation benefits the regulators and the legislators who support the regulation by enabling them to obtain favors from both producers and consumers. D) regulation benefits the consumers over producers because the number of consumers is greater than the number of producers, giving the consumers more political clout.