Which of the following is NOT characteristic of a monopolistically competitive industry?
a. monopoly profits
b. many firms in the industry
c. differentiated products
d. Individual firms can influence the market price.
Ans: a. monopoly profits
You might also like to view...
Goods that can be bought in any quantity desired are called
A) divisible goods. B) indivisible goods. C) invisible goods. D) inferior goods.
Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry, and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP?
A) GDP will not change. B) GDP will increase. C) GDP will decrease. D) GDP may increase or may decrease depending on inflation.
The free rider problem occurs because:
a. it is easy to exclude others from consuming a good. b. consumption is rivalrous, so the consumption of a product by one individual diminishes the amount available for others. c. exclusion is costly or impossible, so a consumer or producer can use a good without having to pay for it. d. external costs are imposed on others not directly involved in the transaction. e. individuals are not required to pay for those goods which do not yield any utility to them.
An increase in the interest rate today leading to a decrease in consumption today violates the law of demand
a. True b. False Indicate whether the statement is true or false