In San Francisco there are many restaurants that specialize in a wide variety of cuisines. Patronage at these restaurants is influenced by factors such as tastes, price, and location. This market is
A) perfectly competitive.
B) monopolistically competitive.
C) oligopolistic.
D) monopolistic.
Answer: B
You might also like to view...
When unexpected inflation occurs,
A. real wages rise. B. average prices have increased. C. lenders benefit. D. borrowers are harmed.
In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 3 percent, then the output gap equals:
A. ?2 percent. B. 1 percent. C. ?1 percent. D. 2 percent.
As a firm's output expands, the
A. ATC will reach a minimum before the AVC. B. AVC will reach a minimum before the ATC. C. ATC and AVC will reach minimums at the same output.
With asymmetric information firms might be reluctant to improve the quality of their products because
A) it costs them more to produce the better quality product. B) they are not able to completely capture the benefits of the improvement. C) consumers do not value the better product. D) consumers are better informed about the product and value the new product less.