In comparing monopolistic competition to perfect competition, one can conclude that the lack of free entry is the key to having the ability to set price
Indicate whether the statement is true or false
False. Free entry is the key to driving long-run profit to zero. The key to price-setting ability is the downward-sloping demand curve. This can, in general, result from having few firms, but is due to product differentiation when considering monopolistic competition..
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Slaver owners were optimistic about the economic future of slavery on the eve of the Civil War
Indicate whether the statement is true or false
The marginal cost of additional health care when there are copayments is zero
a. True b. False
The above figure shows a graph of the market for pizzas in a large town. At a price of $10, there will be
A) no pizzas supplied. B) equilibrium. C) excess supply. D) excess demand.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y2. C. P3 and Y1. D. P2 and Y3.