In monopolistic competition, each firm supplies a small part of the market. This occurs because
A) there are barriers to entry.
B) there are no barriers to exit.
C) there is a large number of firms.
D) firms produce differentiated products.
E) there is a large number of buyers.
C
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The lawmaking time lag is best described as the time that it takes
A) Congress to realize that new laws must be passed to change taxes or spending. B) a newly passed law to become the norm in daily lives. C) the President to sign a bill sent from Congress. D) a jury to render a verdict. E) Congress to pass laws needed to change taxes or spending.
What is an advantage of using options instead of forward contracts when speculating on exchange rates?
What will be an ideal response?
Which of the following statements best describes countries with controlled economies in the 1970s?
a. Countries with controlled economies in the 1970s, historically had very low rates of measured inflation—because prices were forbidden to rise by law, except for the cases where the government deemed a price increase to be due to quality improvements. b. Countries with controlled economies in the 1970s, historically had very high rates of measured deflation—because prices were forbidden to rise by law, except for the cases where the government deemed a price increase to be due to quality improvements. c. Countries with controlled economies in the 1970s, historically had very low rates of measured deflation—because prices were forbidden to rise by law, except for the cases where the government deemed a price increase to be due to quality improvements. d. Countries with controlled economies in the 1970s, historically had no inflation—because prices were forbidden to rise by law, except for the cases where the government deemed a price increase to be due to quality improvements.
If the income elasticity of demand for a good is 0.5, then
a. it is a normal good, and its demand curve will shift to the left if buyers' incomes increase b. it is a normal good, and its demand curve will shift to the right if buyers' incomes increase c. it is an inferior good, and its demand curve will shift to the right if buyers' incomes increase d. it is an inferior good, and its demand curve will shift to the left if buyers' incomes increase e. there is insufficient information to determine whether the good is normal or inferior