Which of the following is NOT a characteristic of the market structure for monopolistic competition?
A) Firms are free to enter and exit.
B) Firms are price takers.
C) Firms compete on product quality, price, and marketing.
D) There are a large number of firms.
B
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Why do economists abstract, and is it appropriate?
What will be an ideal response?
Were Social Security benefits to cease, almost half of all older Americans would fall into poverty
Indicate whether the statement is true or false
Which of the following best describes social costs?
a. The external costs borne by other members of society, ignoring the private costs to market participants. b. The sum of external costs and private costs. c. External costs minus private costs. d. Private costs minus external costs.
The crowding-out effect is
A. only relevant when an inflationary gap is present. B. a situation in which expansionary fiscal policy leads to a decrease in planned spending in the private sector. C. due to the upward slope of the SRAS when the economy is operating to the right of the LRAS curve. D. due to the government being more powerful in the markets when there is an increase in government spending.