Hotels in New York City frequently experience an average vacancy rate of about 20 percent (i.e., on an average night, 80 percent of their rooms are full). This excess capacity is indicative of a(n) ____ industry
a. perfectly competitive
b. monopoly
c. monopolistically competitive
d. oligopoly
c
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Which one of the following are the components of aggregate expenditures?
a. Household consumption, business investment, government spending for goods and services, and net exports. b. Household consumption, business investment, government transfer payments, and net exports. c. Household consumption, business investment, government spending for goods and services, and exports. d. Household consumption, business investment, government spending for goods and services, and saving. e. Household consumption, business inventories, government spending for goods and services, and net exports.
In the market for natural gas, a particularly mild winter will lead to: a. a decrease in the demand and an increase in both equilibrium price and quantity
b. an increase in the supply and an increase in both equilibrium price and quantity. c. an increase in the supply, a decrease in equilibrium price, and an increase in equilibrium quantity. d. a decrease in the demand and a decrease in both equilibrium price and quantity.
Consider the current peso/dollar exchange rate is 100 pesos per dollar and the current inflation rate in Mexico and the U.S. is 3 percent in each country. Assuming purchasing power parity, what will the exchange rate be if the inflation rate increases to 5 percent in Mexico and falls to 2 percent in the U.S.?
What will be an ideal response?
Tax as a wedge
What will be an ideal response?