The major difference between monopolistic competition and monopoly is
A) monopoly is a price setter and a firm in monopolistic competition is a price taker.
B) only a monopoly can earn an economic profit in the long run.
C) only a firm in monopolistic competition can earn an economic profit in the short run.
D) how the quantity of output is determined.
E) only firms in monopolistic competition are protected by barriers to entry.
B
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Suppose the stock of capital remains constant. By adding more labor, perhaps a second work shift, output
A) remains the same. B) decreases. C) increases. D) becomes more costly.
The supply curve reflects the:
a. inverse relationship between price and quantity offered. b. positive relationship between demand and supply. c. negative relationship between price and quantity bought. d. positive relationship between price and quantity bought. e. positive relationship between price and quantity offered.
It is possible to determine how much a nation will export over and above its domestic consumption at various international prices, other things being equal, by finding a set of equilibria. This schedule is:
a. the import demand curve for a nation. b. the export supply curve for a nation. c. the production possibilities frontier for a nation. d. the "notrade" equilibrium.
In what setting would the efficiency wage model best apply?
a. a market research firm in Italy b. a restaurant group in China c. a consumer electronics retail store in Indonesia d. a bicycle parts manufacturing plant in the United States