Suppose demand increases and supply increases. Which of the following will happen?
a. equilibrium price will increase
b. equilibrium price will decrease
c. equilibrium quantity will increase
d. equilibrium quantity will decrease
e. neither the equilibrium price nor the equilibrium quantity will change
C
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In the 1920s and 1930s, economists became increasingly aware that there were industries that did not fit the model of perfect competition or pure monopoly. Two separate theories of monopolistic competition resulted
Edward Chamberlin of Harvard published the Theory of Monopolistic Competition in 1933. Chamberlin defined monopolistic competition as A) a relatively large number of producers offering similar but differentiated products. B) a relatively small number of producers offering similar but differentiated products. C) a market situation in which a large number of firms produce identical products. D) a market situation in which a small number of firms produce similar products.
“Protection” is designed to help
A. firms whose relative inefficiency does not permit successful competition with imports. B. workers who have very high productivity, and cannot survive against low-paid foreign workers. C. government that needs revenue from tariffs and quotas to cover government spending. D. firms that are highly efficient and cannot survive against low-price foreign imports.
If increasing the admission charge for National Parks increases the National Park Service's total revenue, then the demand for National Park visits is:
A. inelastic. B. elastic. C. perfectly elastic. D. a perfectly horizontal line.
Market power is the power to produce at the lowest cost.
Answer the following statement true (T) or false (F)