Monopolistically competitive markets are different from perfectly competitive markets because in monopolistically competitive markets, firms:
A. have some control over price, while in perfectly competitive markets firms have no control over price.
B. face substantial barriers to entry, while in perfectly competitive markets firms face no significant barriers to entry.
C. have no control over price, while in perfectly competitive markets firms have some control over price.
D. sell a standardized product, while in perfectly competitive markets firms sell a differentiated product.
Answer: A
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Excess demand occurs:
A. when price is above the equilibrium price. B. when price is below the equilibrium price. C. whenever the market is not in equilibrium. D. whenever the market is in equilibrium.
The total fixed cost curve
A. is negatively sloped. B. is simply a horizontal line. C. varies with the level of output. D. is simply a vertical line.
If the principal amount of a bond is $10,000,000, the coupon rate is 7 percent, and the inflation rate is 4 percent, then the annual coupon payment made to the holder of the bond is:
A. $300,000. B. $400,000. C. $70,000. D. $700,000.
The Nash Equilibrium outcome assures the maximum profit for firms.
Answer the following statement true (T) or false (F)