The most important characteristic that differentiates one market structure from another is the
a. time it takes for new firms to enter
b. amount of short-run economic profit
c. degree to which goods complement each other
d. number of producers selling in the market
e. barriers to entry
D
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Marginal revenue for an oligopolist is
A) identical to the demand for the firm's product. B) difficult to determine because the firm's demand curve is typically unknown. C) downward sloping beneath the firm's demand curve. D) horizontal on a price-quantity diagram.
In economic terminology, a free rider is someone who:
A. does not pay for his or her own consumption of a public good. B. is earning economic profit. C. chooses not to consume a public good. D. raises his or her prices because all other prices are rising.
The fundamental reason why most supply curves are upward sloping is that
A) consumers substitute lower-priced goods for higher-priced goods. B) the quantity supplied increases as more firms enter the market. C) a higher price never reduces quantity supplied by enough to lower total revenue and so higher production is motivated. D) higher production raises the opportunity costs of production and so price must rise to induce more output.
A decrease in the interest rate, other things being equal, causes a(n):
a. upward movement along the demand curve for money. b. downward movement along the demand curve for money. c. rightward shift of the demand curve for money. d. leftward shift of the demand curve for money.