Monopolistic competition is similar to perfect competition in that:
a. there are only a few firms in the market.
b. the entry into and exit from the market is easy.
c. there are significant barriers to entry in the market.
d. each firm sells a homogeneous product.
e. each firm differentiates its product through advertising.
b
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First-price auctions have all the following properties EXCEPT
a. Highest bid wins b. Highest bidder pays the second highest bid c. The good is assigned to the highest bidder d. The price is set to the highest bid
Distinguish between invention and innovation
Which of the following factors is not a major cause of long-term economic growth?
a. Investments in physical and human capital b. Constructive labor-management relations c. Expansionary monetary policy d. Effective corporate governance policies e. Government institutions and policies to improve economic efficiency
What is a shortcoming of price control legislation?
a. Price controls create surpluses. b. Price controls lower the quantity demanded. c. Price controls create shortages. d. All of the above are shortcomings of price controls.