In what way is monopolistic competition superior to perfect competition?
a. The cost of producing the industry's output is lower in monopolistic competition.
b. Consumers benefit from having differentiated products instead of identical products.
c. Long-run profits are higher in monopolistic competition than in pure competition.
d. In monopolistic competition, firms can fully exploit any existing economies of scale.
b. Consumers benefit from having differentiated products instead of identical products.
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Since property seized through eminent domain must be taken for public use, the government cannot legally sell this seized property to private investors
Indicate whether the statement is true or false
Because we cannot observe or measure utility
A) the predictions of marginal utility theory cannot be verified. B) marginal utility theory is incomplete and so its predictions might not be valid. C) marginal utility theory must be derived from assumptions about demand curves because demand curves can be measured. D) None of the above answers are correct.
There were more poor people in America in 2005 than there were in 1965
Indicate whether the statement is true or false
People respond to incentives
A) by ignoring negative incentives and responding to positive incentives only. B) only when they are irrational. C) as they never intentionally make decisions that would leave them worse off. D) when they have low incomes.