If toothpaste manufacturers compete in a monopolistically competitive market, then:
a. firms are price takers
b. firms try to differentiate their products from those of competitors.
c. firms maximize profits by choosing output where price equals marginal cost.
d. there are significant barriers to entering the toothpaste industry.
b
You might also like to view...
In 2009, household spending was the smallest component of total spending in the U.S. economy
a. True b. False Indicate whether the statement is true or false
Variable inflation rates may be more costly socially than low but predictable rates of inflation
a. True b. False Indicate whether the statement is true or false
The "other things being equal" clause in the law of demand does allow which of the following factors to change?
A. Consumer income. B. The prices of other goods. C. Consumer tastes and preferences. D. The price of the good being demanded.
Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave ________, meaning they make the best decisions given their knowledge of the costs and benefits
A) equitably B) rationally C) emotionally D) selfishly