Answer the following statements true (T) or false (F)
1. Firms in monopolistic competition sell a similar but differentiated product.
2. All firms in monopolistic competition must sell at the same price.
3. In monopolistic competition, overall demand and supply may set a market price, but firms can deviate from that price within a small range without substantially affecting their sales.
4. The best example of monopolistic competition in the United States is the steel industry.
5. In monopolistic competition, there is no need for advertising.
1. TRUE
2. FALSE
3. TRUE
4. FALSE
5. FALSE
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As firms gain market share, industries become more competitive
Indicate whether the statement is true or false
When reality show participants travel through foreign countries, they are generating a
A. Supply of U.S. dollars and a demand for a foreign currency. B. Demand for U.S. dollars and a supply of a foreign currency. C. Supply of U.S. dollars and a supply of a foreign currency. D. Demand for U.S. dollars and a demand for a foreign currency.
Suppose Jones sells a good for $100 at a yard sale. If the producer surplus from the sale is $75, Jones's cost of the good must have been:
A. $100. B. $175. C. $25. D. equal to the deadweight loss.
Checking account balances are:
A. not included in M1. B. not money. C. included in M2 but not M1. D. included in M1 and serve as a medium of exchange.