What is the difference between perfect competition and monopolistic competition?
A) Perfect competition has a large number of small firms while monopolistic competition does not.
B) Perfect competition has barriers to entry while monopolistic competition does not.
C) Perfect competition has no barriers to entry, while monopolistic competition does.
D) In perfect competition, firms produce identical goods, while in monopolistic competition, firms produce slightly different goods.
E) In monopolistic competition, firms produce identical goods, while in perfect competition, firms produce slightly different goods.
D
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Producing an amount of GDP equal to potential GDP is most consistent with the economy producing
A) either on or within the production possibilities frontier. B) on the production possibilities frontier. C) beyond the production possibilities frontier. D) either on or beyond the production possibilities frontier. E) within the production possibilities frontier.
An airline company
A) cannot price discriminate because it is against the law. B) price discriminates by charging higher prices to business travelers. C) price discriminates by charging lower prices to business travelers. D) price discriminates even though its profits are lower because competition forces it to do so. E) has fewer customers because it price discriminates than it would have if it did not price discriminate.
A firm's demand for labor
A) increases when the price of the firm's output falls. B) decreases when the price of the firm's output falls. C) decreases when the wage rate decreases. D) always increases when the prices of other factors fall.
Which of the following are reported as liabilities on a bank's balance sheet?
A) reserves B) checkable deposits C) consumer loans D) deposits with other banks