A market cannot be contestable if
a. very limited economies of scale exist
b. substantial barriers to entry exist
c. the market is perfectly competitive
d. resources can be easily acquired by new firms
e. products are indistinguishable
B
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________ is called an implicit cost, while ________ is called an explicit cost
A) A nonmonetary opportunity cost; a cost that involves spending money B) An accounting cost; an economic cost C) A production cost; a sales cost D) An actual cost; a hypothetical cost
A firm in perfect competition and one in monopolistic competition are very similar in that MR = P for firms in both markets.
Answer the following statement true (T) or false (F)
Which of the following asserts that politicians try to match policies to the preferences of “middle-of-the-road” voters?
a. Median voter theory b. Average constituent theory c. Bipartisan politics theory d. Rational ignorance theory
Which factor will increase the demand for a product?
a. An increase in the price of a substitute product b. An increase in the price of a complementary product c. An unfavorable report on the value of the product d. A decrease in the number of buyers