Firms in a monopolistically competitive industry are free to enter or leave the industry at will

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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Explain the basic idea of the expenditure multiplier and the role consumers play in determining its magnitude

What will be an ideal response?

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Spot market is to futures market as

A) rice is to beans. B) today is to tomorrow. C) squares are to circles. D) quarters are to dollars.

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When a bargaining solution is reached

A) each player receives a net surplus greater than or equal to zero. B) we have a Nash equilibrium. C) the sum of the net surpluses is the Nash product. D) Both A and C.

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In a competitive industry

a. the industry has high barriers to entry b. the industry has high barriers to exit c. the industry has high barriers to entry and exit d. the industry has no barriers to entry or exit

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