In conditions of monopolistic competition,
a. each firm charges the same price.
b. there are only two producers.
c. there are many firms.
d. products are identical.
c. there are many firms.
You might also like to view...
A rational consumer should not consume more of a good when
a. total utility is decreasing b. marginal utility is diminishing c. one unit has already been consumed d. income is decreasing e. the price increases
The choice between specialized and broad task assignments depends on
A. the principle of separation of decision management and control. B. politicking and other influencing activities carried on within an organization. C. technological, informational, and incentive issues. D. the principle of comparative advantage to increase the output level.
Which of the following is not a policy implication of the traditional model?
A. There is a potential role for government if there are positive externalities. B. For the most part, the government needs to stay out of people's way and let them trade. C. There is a potential role for government if there are negative externalities. D. The government should take moral and social incentives into account when considering intervention.
Refer to the above graph. The shift of the budget line from CD to AB is consistent with:
A. an increase in the price of Good 1 and no change in the price of Good 2. B. a decrease in money income. C. an increase in money income. D. a decrease in the price of Good 2 and no change in the price of Good 1.