When comparing perfect competition and monopolistic competition, we find that
A) firms in monopolistic competition produce identical products just as do firms in perfect competition.
B) firms in monopolistic competition face barriers to entry, unlike firms in perfect competition.
C) advertising plays a large role in monopolistic competition, unlike in perfect competition.
D) firms in monopolistic competition are price takers just as is the case for firms in perfect competition.
C
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If a country experiences a real GDP growth rate of 4 percent, real GDP will double in
A) 14 years. B) 23.3 years. C) 25 years. D) 35 years. E) 17.5 years.
Economists consider environmental pollution to be a(n)
a. externality. b. pure public good. c. allocatively efficient outcome. d. public interest outcome.
Harvesting less wheat than the land is capable of producing is an example of
a. marginal costs b. opportunity costs c. good farming practices d. underutilization
Provide an example of a positive externality and explain: 1) why it should be considered a positive externality and 2) what could be done in order to internalize the externality.
What will be an ideal response?