According to Edward Chamberlin, is the "differentness" of products a waste of resources? Explain

What will be an ideal response?


According to Chamberlin, the "differentness" of products that consumers pay for is represented by the difference between the average cost of production for a monopolistic competitor and the minimum average total cost. He did not consider this amount a waste of resources but what consumers are willing to pay for in exchange for more choice and variety in output.

Economics

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Which of the following purchases is included in personal consumption expenditures when determining gross domestic product?

A) purchase of a new house because of the arrival of a new baby B) purchase of a new office building C) vacation expenses for a spring trip to Fort Lauderdale D) purchases of jeans to add to a store's inventory

Economics

Loopholes increase the efficiency of the tax system by making taxpayers better off

a. True b. False Indicate whether the statement is true or false

Economics

The current price of blue jeans is $30 per pair, but the equilibrium price of blue jeans is $25 per pair. As a result,

a. the quantity supplied of blue jeans exceeds the quantity demanded of blue jeans at the $30 price. b. the equilibrium quantity of blue jeans exceeds the quantity demanded at the $30 price. c. there is a surplus of blue jeans at the $30 price. d. All of the above are correct.

Economics

If a regulatory commission wants to provide a natural monopoly with a fair return, it should establish a price that is equal to:

A. minimum average fixed cost. B. average total cost. C. marginal cost. D. marginal revenue.

Economics