If the number of firms in a monopolistically competitive industry increases and the degree of product differentiation diminishes
A. the industry would more closely approximate pure competition.
B. the likelihood of realizing economic profits in the long run would be enhanced.
C. the likelihood of collusive pricing would increase.
D. individual firms would now be operating at outputs where their average total costs would be higher.
Answer: A
You might also like to view...
Systematic efforts to extend vaccination throughout the world have produced a situation today in which the smallpox virus is
A) in short supply (a shortage exists). B) rare. C) scarce. D) all of the above.
The "Money Tower of Babel" mentioned in the text refers to
a. the fact that there is too much money floating on the foreign exchange market b. the fact that countries have their own currencies c. the multiple exchange rates for each currency d. the foreign currencies used to strengthen economies e. too much money servicing international trade creates international inflation
Which of the following would be cures for the U.S. trade deficit?
A. Americans saving less and spending more B. A severe recession in Europe and Asia C. A severe recession in the United States D. A tax cut E. All of these responses are correct.
The Fed's duties include acting as a lender of last resort and supervising or regulating a variety of financial institutions.
Answer the following statement true (T) or false (F)