One important difference between monopoly and monopolistic competition is the
A) slope of the demand curve that the firms faces.
B) point there are no barriers to entry in monopolistic competition.
C) greater restriction of output in monopolistic competition.
D) result that the marginal revenue and demand curves are the same for a monopoly.
B
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
The nominal interest rate is:
A. not adjusted for inflation. B. the interest rate paid by savers. C. the interest rate paid to borrowers. D. the price level adjusted interest rate.
The banking system receives a new cash deposit of $250,000. Total deposits eventually rise by $1 million. The value of the reserve ratio is
A. 25 B. 4 C. 0.50. D. 0.25. E. 0.20.
Why is there a supply curve in pure competition but no supply curve in pure monopoly?
What will be an ideal response?