Which of the following examples reflects monopolistic competition?
a. Mihai subscribes to Link, Inc. because it’s the only cable company in his area.
b. Stefan buys a baseball made by Hit, Inc. because there are no good substitutes.
c. Elena finds that the supermarket stocks bananas produced by only one company.
d. Ana-Maria has difficulty choosing between ten brands of soap.
d. Ana-Maria has difficulty choosing between ten brands of soap.
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On a production possibilities frontier diagram, where are production points that have tradeoffs? Where are production points with a free lunch?
What will be an ideal response?
When producers agree to restrict output, raise the price, and increase profits, the agreement is called ________
A) a pricing agreement B) an oligopoly agreement C) a collusive agreement D) a monopoly agreement
The three motives that John Maynard Keynes identified for why people hold money are the _______, ________ and _______ motives.
Fill in the blank(s) with the appropriate word(s).
When supply and demand for a product decrease simultaneously, we
A) can predict that both equilibrium price and quantity will increase. B) can predict that both equilibrium price and quantity will decrease. C) cannot predict equilibrium price, but know that equilibrium quantity will decrease. D) cannot predict the change in either the equilibrium quantity or equilibrium price.