A student wrote: "Monopolistic competition is a market structure in which a small number of firms compete by making an identical product." If you were the instructor, how would you correct this statement?
What will be an ideal response?
The answer is wrong in several respects: Monopolistic competition is a market structure in which a small large number of firms compete by making an identical product similar but slightly different products.
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Refer to the table above. If investment expenditure falls by $10,000 in the next year, ________, all other variables remaining unchanged
A) gross domestic product will fall to $467,000 B) gross domestic product will fall by $10,000 C) gross domestic product will increase by $10,000 D) gross domestic product will increase to $500,000
What is the Hotelling Principle? Have resource prices behaved as the principle predicts?
What will be an ideal response?
OLI theory is a direct contradiction of trade theory, especially trade theory based on comparative advantage
Indicate whether the statement is true or false
The marginal utility of a unit of good Y to Jane is
a. the additional utility that Jane gets from consuming one more unit of Y. b. defined in money terms as the minimum amount Jane is willing to pay for that additional unit of Y. c. defined in money terms as the maximum amount Jane is willing to pay for all the Y she buys except that additional unit. d. All of the above are correct.