All of the following, except one, are characteristics of monopolistic competition. Which is the exception?
a. There is a large number of sellers.
b. Each seller faces a horizontal demand curve for its product.
c. There are no significant barriers to entry or exit.
d. Sellers produce differentiated products.
e. There is a large number of buyers.
B
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Refer to Figure 10.1. If two lights are installed, the person who was not responsible for the light being installed receives a payoff of
A) 4. B) 6. C) 8. D) 12.
In the equation, GDP = C + I + G + X - M, G refers to
A) federal government expenditures plus all transfer payments. B) local, state, and federal government spending for all purposes. C) the taxes and expenditures of all government units. D) local, state, and federal government expenditure on goods and services, but does not include transfer payments.
A monopolist faces a downward-sloping demand curve because:
a. the demand for its product is inelastic. b. the industry demand curve is horizontal. c. resource prices increase as the monopolist expands output. d. the entire market demand curve is the monopolist's demand curve.
Which of the following would lead to stagflation?
a. demand-pull inflation b. cost-push inflation c. both of the above d. none of the above