Differentiate between an oligopoly and a monopolistic competition on the basis of the number of firms and the degree of product differentiation
What will be an ideal response?
There are fewer firms in an oligopoly market than in monopolistic competition. There are two categories of oligopoly on the basis of the degree of product differentiation—oligopoly with homogeneous products and oligopoly with differentiated products. All firms in a monopolistic competition produce differentiated products.
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Which of the following if true would suggest that an expansionary gap exists in an economy?
a. Rapid inflation during a period when plant capacity utilization is below average b. A steady price level coupled with a 5 percent unemployment rate c. An unemployment rate below its natural rate and an unexpected increase in the consumer price index d. Sluggish growth in the rate of inflation and an exceptional increase in the Dow Jones average e. A modest increase in the number of new unemployment claims and a lower than expected price level
The price of coffee fell from $1.97 per pound in December 2014 to $1.62 in December 2016. During that time the overall price level increased by 1 percent. What was the change in relative price in coffee during this period?
a. –$0.31 b. –$0.33 c. –$0.35 d. –$0.37
In 1979, under the ERM, the member countries were pegged to the ECU, with a ______ band of fluctuation allowed.
A) 2.5% B) 2.25% C) 1% D) 10%
Exhibit 3-5 Supply for Tucker's Cola Data Quantity supplied per week(millions of gallons) Price pergallon 6 $3.00 5 2.50 4 2.00 3 1.50 2 1.00 1 .50 As shown in Exhibit 3-5, the price and quantity supplied by sellers of Tucker's Cola have a(n) ____ relationship.
A. direct. B. inverse. C. negative. D. zero.