(Consider This) The Native American arts and crafts story illustrates the twin ideas of:
A. product differentiation and monopolistic competition.
B. excess capacity and monopolistic competition.
C. local oligopoly and strategic behavior.
D. pure monopoly and price discrimination.
Answer: C
You might also like to view...
The short-run Phillips curve shows only a short-run tradeoff between the unemployment rate and the inflation rate because in the long run the
A) expected inflation rate increases. B) unemployment rate returns to the natural unemployment rate and so there is no long-run tradeoff between the inflation rate and the unemployment rate. C) natural unemployment rate increases. D) inflation rate returns to the natural inflation rate and the unemployment rate returns to the natural unemployment rate. E) inflation rate returns to the natural inflation rate and so there is no long-run tradeoff between the inflation rate and the unemployment rate.
In the above figure, if output were restricted to 300 million pounds of turkey, then
A) the marginal social benefit would exceed the marginal social cost on the last pound of turkey traded by $0.80. B) there would be a deadweight loss of $40 million. C) there would be inefficient underproduction of turkey. D) All of the above answers are correct.
Because workers in the United States work fewer hours per week, on average, than they did over 100 years ago,
A) workers in the United States are worse off than they were over 100 years ago. B) GDP is lower than it would be if U.S. workers worked the same workweek they had 100 years ago. C) GDP is higher than it would be if U.S. workers worked the same workweek they had 100 years ago. D) workers in the United States earn less income than they did over 100 years ago.
Barriers to entry are obstacles, such as patents, that make it difficult for new consumers to enter a market.
Answer the following statement true (T) or false (F)