In Washington, D.C., there are many coffee shops, each offering nearly identical coffee but each shop is located in a different place around the city. It is likely a coffee shop in Washington, D.C., operates in a(n):
A. perfectly competitive market.
B. monopolistically competitive market.
C. monopoly market.
D. oligopoly market.
Answer: B
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In early 1996, the upper Midwest suffered record cold, with wind chills of 50° below zero or worse. Yet, grocery stores stocked fresh citrus fruit (which was clearly not grown locally). Why did grocers stock the fruit?
A. The desire for profit B. Concern for their neighbors C. The need to dispose of excess production D. Government orders to distribute fruit E. All of the responses are correct.
Government intervention to reduce the level of pollution is prompted by the existence of
A. Negative externalities. B. Government failure. C. A monopoly. D. An inequitable distribution of income.
Which of the following changes best represents the effect of the oil embargo (a shut-off of oil from certain OPEC countries) of the 1970s on the U.S. economy?
What will be an ideal response?
Which of the following is an example of a price ceiling?
A. Subsidies for apartment rent in major cities. B. Price supports for agricultural products. C. Minimum-wage laws for unskilled workers. D. Limits on interest rates charged by credit card companies.