A monopolistically competitive industry is characterized by
a. many firms, differentiated products, and barriers to entry.
b. many firms, differentiated products, and free entry.
c. a few firms, identical products, and free entry.
d. a few firms, differentiated products, and barriers to entry.
b
You might also like to view...
Refer to Figure 10.3. A positive demand shock accompanied by a decrease in the real interest rate is best represented by ________ in panel (a) and ________ in panel (b)
A) a shift from AE2 to AE3; a movement from point B to point C B) a shift from AE3 to AE2; a shift from IS2 to IS1 C) a shift from AE1 to AE2; a movement from point A to point B D) a shift from AE1 to AE3; a movement from point A to point C
If consumers enjoy an increase in wealth due to stock market gains, which of the following combinations of events will mostly likely take place?
a. A downward shift of the aggregate expenditure line and a rightward shift of the AD curve b. A downward shift of the aggregate expenditure line and a rightward shift of the AD curve. c. An upward shift of the aggregate expenditure line and a leftward shift of the AD curve. d. An upward shift of the aggregate expenditure line and a rightward shift of the AD curve. e. An upward shift of the aggregate expenditure line and no shift in the AD curve.
If the stock market of a country crashes, the currency of the country is expected to _____ in the future
a. devaluate b. appreciate c. depreciate d. cease to be traded
Which phase of the business cycle would be most closely associated with an economic contraction?
a. Recession b. Trough c. Peak d. Recovery