The number of firms in a monopolistically competitive industry means that
A. existing firms in the industry will make sure new firms do not enter.
B. firms will try to set a common price.
C. firms will not cooperate to set a pure monopoly price.
D. firms will collude.
Answer: C
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Which of the following will not shift the demand for labor to the right?
A. an increase in the wage rate B. an increase in the demand for output C. an increase in the price of a competing input D. an increase in the competitiveness of an industry
The Glass-Steagall Act prevented commercial banks from
A) opening branches in other states unless the bank is part of a bank holding company. B) getting into investment banking. C) selling shares in themselves in the open market. D) issuing commercial paper.
Keynes believed that the precautionary demand for money varied
a. negatively with income. b. positively with income. c. negatively with the interest rate. d. positively with the interest rate. e. Both b and c
If an industrial union is able to negotiate a wage above the market-clearing wage, the non-union wage in other industries will
a. increase b. decrease c. increase, if the union can restrict the supply of labor d. increase, if the union can increase the supply of labor e. decrease due to the strike-breaking activity of the firm