Which of the following describes monopolistic competition?
A. homogeneous products
B. Advertising plays a key role.
C. There is only one seller in the industry.
D. All firms are price takers.
Answer: B
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The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered. Suppose the marginal private cost of the 5th concert is $10,000. Then, for the 5th concert, the
A) marginal external cost equals $30,000. B) marginal social cost equals $30,000. C) marginal external cost equals the marginal private cost. D) marginal external cost equals $40,000. E) marginal external cost equals $10,000.
The slope in the above figure is
A) negative and increasing. B) negative and decreasing. C) positive and increasing. D) positive and decreasing.
Sam has been invited to go to the movies with one friend and to Dairy Queen for ice cream with another friend. Because he has only $5.00, Sam can't do both. If he decides to go the movies, the opportunity cost of his choice is
A. staying at home. B. both the ice cream and the movie. C. ice cream at Dairy Queen. D. the movie.
Something that would cause the long-run aggregate supply curve to shift to the right would be the:
A. inflation rate decreasing. B. The long-run aggregate supply curve is fixed, and does not shift. C. unemployment rate decreasing. D. discovery of a new oil reserve.