Which of the following statements is not correct?
a. Monopolistic competition is different from monopoly because monopolistic competition is characterized by free entry, whereas monopoly is characterized by barriers to entry.
b. Both monopolistic competition and oligopoly fall in between the more extreme market structures of competition and monopoly.
c. Monopolistic competition is different from oligopoly because each seller in monopolistic competition is small relative to the market, whereas each seller can affect the actions of other sellers in an oligopoly.
d. Both monopolistic competition and perfect competition are characterized by product differentiation.
d
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The aggregate supply curve shows the negative relationship between general price level and real GDP
a. True b. False Indicate whether the statement is true or false
Recall the Application about the demand and price for margarine to answer the following question(s).Recall the Application. Between 2000 and 2009, total U.S. consumption of margarine ________ and the price, in real terms, ________.
A. doubled; doubled B. decreased by roughly half; decreased by roughly half C. decreased by roughly half; stayed roughly the same D. doubled; stayed roughly the same
Pam graduates from law school and gets a position in a law firm. At the same time the price of hamburger falls while other food prices have stayed the same. She notices that she buys less hamburger than she did before. Is she violating the law of demand?
A) Yes, since she is buying less hamburger at a lower price. B) Yes, since she is buying less hamburger in a relatively short period of time and we wouldn't expect her tastes to have changed. C) No, since the law of demand refers to relative price changes and the price of hamburger falling is an absolute price change. D) No, since other things are not held constant, such as her income.
Onerous regulations on businesses that take effect next year (in a closed economy)reduce businesses' expected future marginal product of capital. As a result, the real interest rate ________ and saving ________.
A. falls; declines B. rises; increases C. falls; increases D. rises; declines