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.
A
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In the above figure, by increasing its output from Q1 to Q2, the firm
A) reduces its marginal revenue. B) increases its marginal revenue. C) decreases its profit. D) increases its profit.
In a competitive equilibrium, the total consumer surplus must equal the total producer surplus
Indicate whether the statement is true or false
If there is a large increase in the price of oil, which of the following would most likely occur in the short run?
a. The aggregate demand curve shifts upward, the price level rises, and output increases. b. The aggregate supply curve shifts downward, the price level falls, and output increases. c. The aggregate demand curve shifts downward, the price level falls, and output falls. d. The aggregate demand curve shifts upward, output remains unchanged, and the price level rises. e. The aggregate supply curve shifts upward, the price level rises, and output falls.
In making policies about the nation's money supply, the Federal Reserve Board
a. operates as an independent entity. b. must consult each member bank. c. must consult with Congress. d. must coordinate all activity with the White House.