A monopolistically competitive industry combines elements of both competition and monopoly. The monopoly element results from:
A. the likelihood of collusion.
B. high entry barriers.
C. product differentiation.
D. mutual interdependence in decision making.
Answer: C
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The most important tool of monetary policy is ________, through which the Fed affects the variable ________ in the money-creation formula
A) open market operations, e B) open market operations, H C) rediscount policy, e D) rediscount policy, c E) reserve requirement policy, e
Suppose a U.S.-made machine costs $500 and the exchange rate is 100 yen = $1 . A Japanese firm purchasing this machine would pay
a. 100 yen b. 500 yen c. 5,000 yen d. 10,000 yen e. 50,000 yen
Which of the following is not a cost of taxes to taxpayers?
a. the tax payment itself b. deadweight losses c. administrative burdens d. goods and services provided by the government
In calculating the GDP, national income accountants:
A. treat inventory changes as an adjustment to personal consumption expenditures. B. ignore inventories because they do not represent final goods. C. subtract increases in inventories or add decreases in inventories. D. add increases in inventories or subtract decreases in inventories.