In the modern Keynesian model, over much of its range the short-run aggregate supply (SRAS) curve is
A) horizontal.
B) vertical.
C) upward sloping.
D) downward sloping.
C
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Monopolistic competition and perfect competition are similar in that each market structure is characterized by
A) advertising. B) production at minimum average cost in the long run. C) a horizontal demand curve. D) the absence of long-run economic profits.
If there is a sole producer of a good, and he faces no threat of competition, it is likely that:
A. government intervention will have no impact on the market. B. government intervention will raise prices to consumers. C. government intervention will increase total surplus. D. government intervention will make things better for buyers and sellers.
The relationship between MPC and MPS is:
a. 1 + MPC = MPS. b. 1 ? MPC = MPS. c. 1 + MPS = MPC. d. MPC ? MPS = 1.
Identify the correct statement
a. Firms under monopolistic competition face inelastic demand curves. b. Firms under monopolistic competition produce and sell products that are complements. c. Firms under monopolistic competition can enter or leave the market with ease in the long run. d. Firms under monopolistic competition act interdependently.