Low concentration ratios are typical of monopolistic competition.
Answer the following statement true (T) or false (F)
True
Monopolistically competitive markets have low barriers to entry and low or modest concentration ratios.
You might also like to view...
A competitive firm Select one:
a. and a monopolist are price makers. b. and a monopolist are price takers. c. is a price maker, whereas a monopolist is a price taker. d. is a price taker, whereas a monopolist is a price maker.
If no beautification projects were undertaken in a city except by private individuals or firms, the city would almost surely be less beautiful than otherwise comparable cities because
A) aesthetic standards vary so widely. B) it is extremely difficult to induce people to pay on a voluntary basis for the pleasure they receive from urban beautification projects. C) people may enjoy beauty, but they are not willing to pay for it. D) private individuals and firms generate more external costs than benefits.
The average total cost curve eventually slopes upwards because of the
A) law of diminishing returns. B) reductions in average fixed costs. C) increase in capital costs. D) decrease in labor costs.
Refer to Figure 4-7 which shows the market for watermelons. Suppose the government imposes a price floor of Pw. How will the price floor affect the quantity supplied, quantity demanded, and quantity exchanged?
What will be an ideal response?