Monopolistic competition is a market structure in which there
a. are no good substitutes produced within the industry, giving each firm substantial market share
b. are perfect substitutes produced within the industries, giving each firm only partial market share
c. are monopolies competing to create monopolistic competition in the short run and oligopoly in the long run
d. are a large number of substitute goods produced in the industry
e. are only a few firms in the industry
D
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If both demand and supply rise, which of the following must be true?
a. The equilibrium quantity will rise. b. The equilibrium quantity will fall. c. The equilibrium quantity will not change. d. The change in the equilibrium quantity is indeterminate.
Complete this statement. Sellers compete against other sellers and
A) sellers compete against buyers. B) sellers cooperate with buyers. C) buyers cooperate with other buyers. D) both A and C are true.
The time-inconsistency problem with monetary policy tells us that, if policymakers use discretionary policy, there is a higher probability that the ________ will be higher, compared to policy makers following a behavior rule
A) inflation rate B) unemployment rate C) interest rate D) foreign exchange rate
The monetarists emphasize the
a. importance of fiscal policy for determining GDP. b. the instability of the money supply. c. the stability of velocity. d. need to "fine tune" the level of economic activity. e. both b and c.