It is relatively easy for firms to enter and exit a perfectly competitive market
a. True
b. False
Indicate whether the statement is true or false
True
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What do Spotify and Apple have in common?
A) The profitability of each firm depends on its interactions with other firms. B) Each company was founded in the same state. C) The industry in which each firm competes is an oligopoly because of government-imposed barriers to entry. D) Each achieved a dominant position in its industry because it owned a key input in the production of its product.
Compared to a perfectly competitive firm, a monopolist
A. is less likely to advertise. B. will, according to Schumpeter, invest fewer resources in research and development. C. usually produces an inefficiently small level of output. D. is less likely to face government regulation.
To tell a compelling story, an economist relies on
a. case studies b. anecdotes c. irrelevant data d. anecdotes and irrelevant data e. case studies and anecdotes
According to the Weber-Fechner law, the perceived size of a change in a stimulus will be large when the change in the stimulus:
A. is a rare event. B. occurs frequently. C. is large in proportion to the original stimulus. D. is small in proportion to the original stimulus.