A significant benefit of monopolistic competition compared with pure competition is:
A. less likelihood of X-inefficiency.
B. improved resource allocation.
C. greater product variety.
D. stronger incentives to achieve economies of scale.
Answer: C
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In the above figure, what is the amount of producer surplus at the efficient quantity?
A) $0 B) $1,000 C) $2,000 D) $4,000
Refer to Table 9-12. Which country has an absolute advantage in producing belts?
A) Estonia B) Morocco C) both countries D) neither country
In the presence of asymmetric information,
A) all contracts are efficient. B) efficiency in risk bearing cannot be achieved. C) a trade-off exists between risk-bearing efficiency and production efficiency. D) no contracting will take place.
An elimination heuristic makes the choice on the basis of all the categories in which the events differ
Indicate whether the statement is true or false