What is "competitive" about a monopolistically competitive market?
What will be an ideal response?
A monopolistically competitive market has many sellers and buyers and each monopolistically competitive firm can freely enter or exit the market, which in the long run leads to a zero economic profit for all existing firms in the market.
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When the interest rate is R, the formula for finding the value of a current amount $M one year from now is
A) M (1 + R/100). B) M (1 + R). C) M / (1 + R). D) M / R. E) M / (100R).
Critics of advertising argue that advertising leads to less elastic demand for products and a larger markup of price over marginal cost
a. True b. False Indicate whether the statement is true or false
People supply their resources to the lowest-paying alternative, other things constant
Indicate whether the statement is true or false
Policy makers who listen to the academic economists from whom they ask advice:
A. never privately agree with the economists' policy recommendations. B. do not always follow the economists' policy recommendations. C. always follow the economists' policy recommendations. D. realize that the best way to get elected and reelected is to say constantly that all choices have costs and benefits.