The demand curve of a monopolistically competitive producer is:
A. less elastic than that of either a pure monopolist or a pure competitor.
B. less elastic than that of a pure monopolist, but more elastic than that of a pure competitor.
C. more elastic than that of a pure monopolist, but less elastic than that of a pure competitor.
D. more elastic than that of either a pure monopolist or a pure competitor.
Answer: C
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Refer to Figure 5-7. Which of the following statements is true?
A) The optimal quantity of pollution reduction is QB. B) The optimal quantity of pollution reduction is QE. C) At QE the benefits of reducing pollution outweigh the cost of pollution reduction. D) At QB society is under allocating resources to pollution reduction.
Compared with industrialized economies, most developing countries are poor in the factors of production essential to modern industry: These factors are
A) capital and skilled labor. B) capital and unskilled labor. C) fertile land and unskilled labor. D) fertile land and skilled labor. E) water and capital.
An effluent fee
a. is a dollar value added to the price of a pollution-generating product b. is a command-and-control instrument c. can be based upon the degree of harm linked to the contaminant being released d. cannot be linked to the quantity of pollution released
The effect of spreading out the fixed costs outweighing the effect of diminishing returns is illustrated by the ________ average cost curve ________.
A. long-run; decreasing B. long-run; increasing C. short-run; decreasing D. short-run; increasing