How is monopolistic competition different from a monopoly?
a. Monopolistic competition has difficult entry; a monopoly has easy entry.
b. A monopoly has strong control over a product; monopolistic competition has little control over a product.
c. Monopolistic competition has similar (but not identical) brands; a monopoly has one brand.
d. A monopoly has zero long-run economic profits; monopolistic competition has high long-run economic profits.
c. Monopolistic competition has similar (but not identical) brands; a monopoly has one brand.
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Which of the following statements is true?
A) The government plays absolutely no role in economies characterized by communism. B) Competition among firms is likely to be higher in communist economies than in market economies. C) The government plays absolutely no role in economies characterized by market economies. D) Competition among firms is likely to be higher in market economies than in communist economies.
Income inequality increases as the Gini coefficient approaches 1
Indicate whether the statement is true or false
In the probit model Pr(Y = 1|X1, X2,..., Xk) = ?(?0 + ?1X1 + ?2X2 + ... + ?kXk),
A) the ?'s do not have a simple interpretation. B) the slopes tell you the effect of a unit increase in X on the probability of Y. C) ?0 cannot be negative since probabilities have to lie between 0 and 1. D) ?0 is the probability of observing Y when all X's are 0
Because information is costly to acquire,
a. people will rationally choose not to become fully informed when making decisions. b. people will generally choose to become as fully informed as possible when making decisions. c. people will generally choose to acquire no information that would be relevant to their decisions. d. none of the above are true.