Which of the following examples would most likely happen with monopolistic competition?
a. When an ice cream shop introduces coffee ice cream, a nearby ice cream shop remains unaware of this.
b. When a bowling alley offers $1,000 for a perfect game, another bowling alley offers $2,000 for a perfect game.
c. When a coffee shop introduces pumpkin lattes, another coffee shop introduces cranberry lattes.
d. When a restaurant offers free coffee refills, a nearby restaurant does the same.
a. When an ice cream shop introduces coffee ice cream, a nearby ice cream shop remains unaware of this.
You might also like to view...
The Internet has made transactions between businesses (B2B trading) fast and easy. Any business in any location can access specialized knowledge, labor, and materials. It is likely that these virtual economic communities will result in
A) external economies of scale. B) internal economies of scale. C) consolidation of industries into a small number of powerful firms. D) suppression of innovations and collusive behavior, driving up prices. E) government intervention and regulation.
Why do households hold less in checking accounts then they once did?
What will be an ideal response?
The industrial organization economics perspective locates the source of advantage at the
a. Individual firm level b. Industry level c. Both a and b d. None of the above
A devastating earthquake destroys ten percent of the population in California. As a result: a. California's production possibility curve shifts outward
b. California moves up and to the left along its production possibilities curve. c. California moves down and to the right along its production possibilities curve. d. California's production possibility curve shifts inward.