In monopolistic competition, firms can have some market power
A. by producing differentiated products.
B. because of barriers to entry into the industry.
C. because of barriers to exit from the industry.
D. by virtue of size alone.
Answer: A
You might also like to view...
In the simple circular flow model, total income in one nation must equal
A) the sum of wages, rents, interest and profits. B) the yearly amount earned by that nation's resources. C) the total monetary value of all final goods and services. D) All of the above are correct.
When the price of a burrito increases from $2 to $4, the quantity demanded decreases from 50 to 40. Using the midpoint method, the price elasticity of demand equals
A) 1/3. B) 3. C) 2. D) 1. E) 1/2.
What is the present value of a payment of $100 one year from today if the interest rate is 5 percent?
a. $95.50 b. $95.24 c. $95.00 d. None of the above are correct to the nearest cent.
Refer to Table 3-40. Italy should specialize in the production of
a. boats and import cars b. cars and import boats c. both goods and imports neither good d. neither good and import both goods