When you purchase and eat a hamburger, no one else can eat the same hamburger. When you download a file on the Internet, the file is still available for others to download. Economists explain this difference between hamburgers and computer files by saying that the hamburger is:
A. nonexcludable whereas the computer file is not.
B. nonrival in consumption whereas the computer file is not.
C. rival in consumption whereas the computer file is not.
D. excludable whereas the computer file is not.
Answer: C
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Which of the following is characteristic of a monopolistic competitor?
a. a standardized product b. the ability to influence price c. allocative efficiency d. a horizontal firm demand curve
In regulated industries, the optimal regulation is to set price such that MC=P.
Answer the following statement true (T) or false (F)
When a firm has little ability to influence market prices it is said to be in
a. a thin market. b. a power market. c. a competitive market. d. a strategic market.
f hot dogs are an inferior good, an increase in income will result in
What will be an ideal response?