When weighing the efficiency of monopolistic competition, which of the following should be considered?
i. The information provided by advertising
ii. Product variety
iii. The extra cost of excess capacity
A) ii only
B) i and iii
C) ii and iii
D) i, ii, and iii
E) iii only
D
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Distinguish between a perfectly competitive firm and a monopolistically competitive firm on the basis of the long-run equilibrium price
What will be an ideal response?
The figure shows the market for books before and after a sales tax is introduced. The tax on books is ________ a book, buyers pay ________ of tax per book, and the government's tax revenue is ________ a week
A) $1.20; $0.80; $128 B) $0.80; $1.20; $12 C) $0.40; $0.40; $4 D) $1.20; $0.80; $12
According to the Phillips curve, in the short run, if policymakers choose an expansionary policy to lower the rate of unemployment, the economy will experience an increase in inflation.
Answer the following statement true (T) or false (F)
Suppose the residents of Metropolis travel to work either by bus or train. If the price of train tickets increases, then:
A. the demand for train tickets will decrease. B. the demand for train tickets will increase. C. the demand for bus tickets will decrease. D. the demand for bus tickets will increase.