Compared to the perfectly competitive outcome, monopolistically competitive markets will result in:
A. a wider variety of products and higher prices.
B. less product variety and higher prices.
C. a wider variety of products and lower prices.
D. less product variety and lower prices.
Answer: A
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The expression "There's no such thing as a free lunch" means
a. that even if the lunch is free, we pay for it in extra calories b. that resources used up in producing the lunch are not available to satisfy other wants c. the same thing as "The best things in life are free" d. you can eat only if you work first e. neither sea water nor air is free
Which of the following is false? a. Generally speaking, higher levels of saving will lead to higher levels of investment and capital formation and, therefore, to greater economic growth. b. Economic growth rates tend to be higher in countries where the government enforces property rights
c. Investment alone does not guarantee economic growth, which hinges importantly on the quality and the type of investment as well. d. None of the above are false; all are true.
As a result of a conviction under the Sherman Antitrust Act, Standard Oil of New Jersey
A. was broken up into many smaller companies. B. was fined for its extensive price discriminating activity. C. was restrained from oil exploration for twenty-five years, which enabled other oil firms to assume leadership in the industry. D. went bankrupt and no longer is in existence.
Monopolistic competition and perfect competition are different in that
A. only monopolistically competitive firms advertise. B. only perfectly competitive firms maximize profits where marginal revenue equals marginal cost. C. only perfectly competitive firms are characterized by long-run economic profits of zero. D. only monopolistically competitive firms can earn economic losses in the short-run.