Monopolistic competition is an industry in which products are differentiated, but in oligopolies products are standardized.
Answer the following statement true (T) or false (F)
False
Both monopolistic competition and oligopoly can produce products that are differentiated. For example, products in the auto industry and products in fast food are differentiated. The difference between the two types of market structures is that there is easy entry in monopolistic competition.
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The use of vouchers for education
A) decreases the demand for education and increases the equilibrium quantity. B) increases the demand for education and increases the equilibrium quantity. C) increases the deadweight loss for those who can't afford schooling. D) decreases the quantity provided to the efficient level. E) decreases the demand for education and decreases the equilibrium quantity.
In a competitive marketplace, prices adjust until
A) MRS's are equal to zero. B) excess supply equals excess demand equals zero in all markets. C) each consumer has maximized utility subject to his budget constraint. D) all firms earn zero profit.
A perfectly competitive firm will always maximize profits by producing where
A. per-unit costs are lowest. B. total costs and total revenue are equal. C. P = MC. D. P = AC.
The Federal Reserve district borders follow exclusively state borders
a. True b. False