All of the following are characteristics of monopolistic competition EXCEPT
A) a few firms dominate the industry.
B) product differentiation.
C) many firms in the industry.
D) advertising.
Answer: A
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Marginal resource cost is the
a. cost of hiring another unit of a resource b. additional revenue generated by hiring one more unit of a resource c. additional output generated by hiring one more unit of a resource d. total cost of hiring a resource e. average cost of hiring a resource
Creative destruction by innovation means
A. destruction of an innovative product once it fails in the market. B. introduction of an innovative product makes older substitute goods obsolete. C. substitute goods make innovative goods less competitive in the market. D. introduction of innovative goods increase the competition in the market
The slower the marginal utility declines as more of a good is consumed the:
A. larger the opportunity cost of the good. B. smaller the elasticity of demand. C. smaller the opportunity cost of the good. D. greater the elasticity of demand.
The number of seats available in a stadium is fixed at 80,000. The equilibrium price for a ticket to a football game at the stadium is $30. The equilibrium price for a ticket to a baseball game at the stadium is $20. Which of the following is true?
A. The supply of baseball games must be less elastic than the supply of football games. B. The demand for each baseball game must be lower than the demand for each football game. C. Football games must be more expensive to produce than baseball games. D. The demand for baseball games must be more elastic than the demand for football games.