The traditional view of monopolistic competition holds that this type of industrial structure is inefficient because
a. there are too few firms to reach an efficient level of production.
b. firms do not operate at the output that minimizes average costs.
c. more advertising is needed to inform customers about product differences.
d. consumers do not have enough choice among the product varieties available.
b
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Refer to Figure 13-13. If the diagram represents a typical firm in the market, what is likely to happen in the long run?
A) Inefficient firms will exit the market and new cost-efficient firms will enter the market. B) New firms will enter the market causing the demand to decrease for existing firms. C) Competition will be intensified as firms strive to make long-run profits. D) Some firms will exit the market causing the demand to increase for firms remaining in the market.
In macroeconomics, _____ refers to the purchase of new capital
Fill in the blank(s) with correct word
The Temporary Aid to Needy Families (TANF) program:
A. requires that recipients participate in work activities. B. is associated with a decrease in single mothers working. C. has caused a rise in national welfare caseloads. D. was an important factor in the increase in poverty among children between 1993 and 2002.
If the supply curve for orange juice is estimated to be Q = 40 + 2p, then, at a price of $2, the price elasticity of supply is
A) .01. B) .09. C) 1. D) 11.