All of the following characteristics are common to both monopolistic competition and perfect competition except
A) firms act to maximize profit.
B) firms take market prices as given.
C) entry barriers into the industries are low.
D) the market demand curves are downward-sloping.
B
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One of the series included among the lagging indicators is
A) the change in sensitive material prices. B) the index of industrial production. C) employees on non-agricultural payrolls. D) average duration of unemployment.
To prevent radio interference and crowding of geostationary satellites, governments are working to replace the earlier first-come first-served system with auctions that will allocate equipment and radio frequencies to high bidders
Indicate whether the statement is true or false
Suppose you own a small business. Last month, your total revenue was $6,000. In addition, you paid: $1,000 in monthly rent for office space,$200 in monthly rent for equipment,$3,000 to your workers in wages for the month, and$1,000 for the supplies you used that month. If you correctly determine that your economic profit last month was negative $200, then it must be true that:
A. your implicit costs are $200 per month. B. you do not have any implicit costs. C. the rent you pay on your equipment is an implicit cost. D. your implicit costs are $1,000 per month.
Aggregate supply can be thought of as
A. a fixed amount of output. B. unrelated to the price level. C. a schedule of output at different price levels. D. the volume of goods at the ends of the production possibilities curve.