Some markets have many buyers and sellers but fall into the category of monopolistic competition rather than perfect competition. The most common reason for this is
A) there are high barriers to entering these markets.
B) firms in these markets sell identical products.
C) firms in these markets make high profits.
D) firms in these markets do not sell identical products.
Answer: D
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Refer to Table 2-1. Assume Dina's Diner only produces sliders and hot wings. A combination of 40 sliders and 50 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
If the tax multiplier is -4, the MPS is
A. 0.2. B. 0.3. C. 0.4. D. 0.5.
If a monopolized industry should become purely competitive without any change in cost conditions:
A. both price and quantity produced will decrease. B. both price and quantity produced will increase. C. price will increase and quantity produced will decrease. D. price will decrease and quantity produced will increase.
Which of the following are examples of market signals?
A. extracurricular activities B. education C. warranties D. all of the above