A major difference between monopoly and monopolistic competition is
A. The number of firms in the market.
B. One has a downward-sloping demand curve, and the other does not.
C. One maximizes profits by setting MR equal to MC, and the other does not.
D. One type of firm has market power, and the other does not.
Answer: A
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In a ________ tax system, the marginal tax rate declines with income
A) progressive B) regressive C) proportional D) marginal
Points on the same utility curve are
A. points where the person is indifferent between bundles on the line. B. points where utility is maximized. C. never possible. D. known as "points of light."
Compared to a barter economy, using money increases efficiency by reducing
a. transaction costs. b. the need to exchange goods. c. the need to specialize. d. inflation.
Which of the following statements concerning the prisoner's dilemma is TRUE?
A) The player who moves last will always win. B) Confessing is the dominant strategy for both players. C) Neither player will pick the dominant strategy. D) The player who moves first will always win.