One characteristic of monopolistic competition is that it has
A) many firms producing a slightly differentiated product.
B) many firms producing identical goods.
C) one firm producing a unique good.
D) a few firms producing a slightly differentiated product.
E) large barriers to entry.
A
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Refer to the scenario above. What is the change in total revenue due to the price change?
A) The total revenue increases by $350. B) The total revenue increases by $3,400. C) The total revenue decreases by $1,650. D) The total revenue decreases by $2,275.
The table above shows sales of the firms in the pet food industry. The four-firm concentration ratio in the industry is
A) 59 percent. B) 80 percent. C) 70 percent. D) 40 percent.
When the price of a sweet roll is $2, the bakery sells 300 rolls per week. If it raises the price to $3, then it sells 150 rolls per week. Based on this, the price elasticity of a sweet roll between these prices is
A. 0.40. B. 1 C. 1.67. D. 0.67.
A decrease in the effective tax rate on capital would cause the IS curve to
A. shift up and to the right. B. shift down and to the left. C. remain unchanged. D. remain unchanged if taxes are fully deductible from income; otherwise, shift up and to the right.