What are types of firms that exemplify monopolistic competition?
What will be an ideal response?
Most types of retailing in metropolitan areas are handled by monopolistic ally competitive firms. The retail stores would include gasoline stations, restaurants, clothing stores, jewelry stores, sawmills, and so forth. On the manufacturing side, there would be companies that publish books, make plastic pipes, make textile machinery, produce ready-mix concrete, or construct wood furniture or cabinets.
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According to the Monetarist view, the impact of expansionary monetary policy will be:
a. the same in the long run as in the short run. b. the same regardless of whether the effects of the policy are anticipated or unanticipated. c. a higher price level (inflation). d. a decrease in short-run prices and an increase in long-run prices.
Think about opportunity coast in this question: A fish hatchery raises brook trout and rainbow trout. An increase in the market price of brook trout therefore tends to
What will be an ideal response?
The imposition of a sales tax on eggs will:
a. Cause a parallel shift downward in demand for eggs. b. Cause a parallel shift upward in demand for eggs. c. Lead to an increase in the slope of the demand curve for eggs. d. Have no effect in demand or sales of eggs since they are a small part of any family's budget.
When a price ceiling below the equilibrium price is imposed on a good, production of the good
A) increases. B) decreases. C) does not change. D) is frozen at the pre-ceiling level. E) either increases or decreases depending on whether the supply of the good increases or decreases when the price ceiling is imposed.