In monopolistic competition, modest changes in the output or price of any single firm will have no significant influence on the sales of other firms.
Answer the following statement true (T) or false (F)
True
In monopolistic competition, modest changes in the output or price of any single firm will have no perceptible influence on the sales of any other firm. This relative independence results from the fact that the effects of any one firm's behavior will be spread over many other firms (rather than only two or three other firms, as in an oligopoly).
You might also like to view...
Using money as a medium of exchange:
a. requires people to match goods wanted with goods available. b. inhibits economic transactions. c. reduces the need for barter in the economy. d. reduces the need for a banking system. e. reduces the range of feasible exchanges in the economy.
In the long run, a firm in perfect completion will earn which of the following?
a. Economic loss b. Economic profit c. Zero economic profit d. Either economic loss or profit
Which mathematical expression describes what households do with their disposable income?
a. Y = C + I b. Y = C + I + G c. Y = C + S + G d. I = S e. Y = C + S
Among the losers from inflation are
a. savers and borrowers b. landlords and the government c. borrowers and the government d. those on a fixed income and borrowers e. those on a fixed income and savers