A monopolistic competitor's demand curve tends to be more elastic than a monopolist's demand curve
a. True
b. False
Indicate whether the statement is true or false
True
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Diminishing marginal product of labor occurs when: a. adding another unit of labor increases output, but not by as large a margin as the previous unit of labor employed. b. the average product of labor begins to rise
c. adding another unit of labor increases output by a larger margin than the last unit of labor employed. d. all inputs are varied simultaneously in the same proportion.
The 1978 Full Employment and Balanced Growth Act called for a target unemployment rate of
a. 0 percent b. 5 percent c. 1 percent d. 2 percent e. 4 percent
Suppose that the United States can make 15 cars or 20 bottles of wine with one year's worth of labor. France can make 10 cars or 18 bottles of wine with one year's worth of labor. From these numbers, we can conclude that
a. the United States has a comparative advantage in the production of cars. b. France has a comparative advantage in the production of wine. c. the United States has an absolute advantage in the production of cars. d. All of the above are correct.
One of the defining characteristics of an oligopoly is that:
A. the strategic interactions between a firm and its rivals have a major impact on its profits. B. there are only a few buyers in the market. C. there are no barriers to entry to the market. D. no single firm has an impact on the market as a whole.