One difference between monopolistic competition and pure competition is that
A. products may be homogeneous in monopolistic competition.
B. there is some control over price in monopolistic competition.
C. firms differentiate their products in pure competition.
D. monopolistic competition has significant barriers to entry.
Answer: B
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An indifference curve is:
a. downward sloping and concave to the origin. b. downward sloping and convex to the origin. c. upward sloping and concave to the origin. d. upward sloping and convex to the origin.
Dee loves to landscape her yard, but her neighbor Marvin places a low value on his landscaping. When Marvin's grass is neglected and gets long, Dee will mow it for Marvin. This is an example of
a. a situation in which the Coase theorem fails to explain the lawn mowing arrangement. b. an improper allocation of resources. c. a private solution to a negative externality problem. d. an exploitation of a common resource.
The trilemma refers to all the following EXCEPT:
a. a fixed exchange rate. b. international capital mobility. c. monetary policy autonomy. d. price controls.
Refer to the graph below representing the purely competitive market for a product. When the market is at equilibrium, the producer surplus would be represented by the area:
A. b + c
B. b
C. c
D. b + c + d