There are many restaurants in a city, each one offering food and services that differ from those of its competitors. There is also free entry of sellers into the market, and each seller serves a very small fraction of the total number of meals served each day. The restaurant industry in Raleigh is best categorized as:
A. monopolistically competitive.
B. perfectly competitive.
C. an oligopoly.
D. a pure monopoly.
Answer: A
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Around Easter time, the price of eggs rises. Some consumers complain about this and claim stores are 'price gouging.' Are there any positive functions played by the higher price of eggs around Easter? What would happen if the price of eggs were not permitted to rise by law?
Exhibit 14-8 Aggregate demand and supply
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In Exhibit 14-8, when aggregate demand shifts from AD4 to AD5, the economy experiences:
A. cost-push inflation. B. cost-pull inflation. C. demand-push inflation. D. demand-pull inflation.
As a general rule, marginal utility will be less:
A. as less of the good is consumed. B. as more of the good is consumed. C. when average utility is at a maximum. D. only when the good is inferior.
Why do many film processing companies have a policy of printing every picture on a roll of film or a memory card, even if the picture is very fuzzy and customers are allowed to ask for refunds on any pictures they do not like?
What will be an ideal response?