Monopolistic competition differs from perfect competition because
A. monopolistic competitors advertise and differentiate their product.
B. monopolistic competitors have products with no close substitutes.
C. monopolistic competitors produce at the peak level of efficiency.
D. monopolistic competitors can make a profit even in the long run.
A. monopolistic competitors advertise and differentiate their product.
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The table above represents five points on the production possibility frontier for the small country of Baca, which produces only rugs (measured in thousands) and wheat (measured in thousands of bushels): If the economy is currently at point A,
what is the opportunity cost of producing an additional 10,000 bushels of wheat? If the economy is currently at point B, what is the opportunity cost of producing an additional 10,000 bushels of wheat? What if the economy is currently at point D?
Any country with highly attractive domestic investment opportunities and a low savings rate will tend to
a. run a current account deficit that is equal to its capital account surplus. b. run a current account surplus deficit over a long period. c. tend to be relatively poor (compared with other countries). d. run a current account deficit.
How can irresponsible fiscal policy contribute to a speculative attack on a country's currency that is fixed in value to another currency?
What will be an ideal response?
When analyzing a problem, if an economist is attempting to understand what caused something to happen without considering whether or not the action was fair or just, the economist is thinking
A. positively. B. normatively. C. justifiably. D. negatively.