For a monopolistically competitive market, the number of firms in the market implies that
A. each firm faces a perfectly elastic demand.
B. all firms will make losses.
C. firms will collude to set monopoly price and output.
D. each firm acts independently of other firms.
Answer: D
You might also like to view...
Suppose that a price index in Latvia was 120 in 2015 and 150 in 2016. The inflation rate between those two years was approximately
A) 8 percent. B) 12.5 percent. C) 25 percent. D) 30 percent.
The actual division of the burden of a tax is called
A) tax incidence. B) tax dispersion. C) tax credit. D) excess burden.
A negative externality exists when
A. a person's or group's actions cause a benefit that is felt by others. B. a person's or group's actions cause a cost that is felt by others. C. market output is less than socially optimal output. D. a and c E. b and c
The above figure shows the demand and cost curves facing a monopoly. The deadweight loss of this monopoly is
A) $100. B) $250. C) $1,250. D) $2,500.