All of the following are assumptions of monopolistic competition EXCEPT
A. easy entry of new firms in the long run.
B. many buyers and sellers.
C. homogeneous product.
D. profit-maximizing behavior.
Answer: C
You might also like to view...
The present value of $1 million to be received 10 years from now will
a. decrease if the interest rate rises. b. be greater if the funds were going to be received 15 years from now. c. be greater than $1 million. d. increase if the interest rate were to rise from 4 percent to 8 percent.
In spite of limited free market reforms, which country remains essentially a communist system?
A. Cuba, as shown by the heavy taxes on the expected earnings, not actual sales, of private enterprises B. Cuba, as shown by the legalization of the U.S. dollar to earn foreign exchange C. Russia, as shown by the allowance of supply and demand to set higher prices for basic consumer goods D. Russia, as shown by the streets choked with foreign cars
Refer to the data. We can infer that, at zero output, this firm's total fixed, total variable, and total costs are:
A. zero, zero, and zero, respectively.
B. zero, $25, and $175, respectively.
C. $150, $25, and $175, respectively.
D. $150, zero, and $150, respectively.
An economy produces capital goods and consumer goods. This economy is operating at a point on its production possibility frontier associated with a small amount of capital goods and a large amount of consumer goods. This is most likely to be a
A. country with a free market. B. "poor" country because such a nation has difficulty devoting many resources to the production of capital goods. C. "rich" country because such a nation can afford to sacrifice. D. country with a command economy.