Which of the following characteristics does perfect competition have in common with monopolistic competition?
a. price-taking firms
b. homogeneous products
c. no barriers to entry
d. horizontal demand curve
e. neither market advertises
C
You might also like to view...
Which of the following is an example of an externality?
a. Drug abuse affecting David's health. b. Sara taking a break from work. c. A transaction between two parties, affecting them alone. d. Tom's smoking affecting his roommate's health.
Which of the following is not true about excess reserves?
A. They change when the reserve requirement changes. B. They are equal to the required reserve ratio times transactions deposits. C. They are bank reserves beyond what the bank is required to hold. D. They represent the dollars an individual bank can lend.
Which statement is true?
A. The firm is making a profit in the short run.
B. The firm is making a profit in the long run.
C. The firm is making a loss in the short run.
D. The firm is making a loss in the long run.
Suppose that indifference curve I1 lies to the left of indifference curve I2. We can conclude that
A. all points along indifference curve I1 will correspond to higher utility than points along indifference curve I2. B. some, but not all, points on indifference curve I1 will correspond to lower utility than points along indifference curve I2. C. all points along indifference curve I1 will correspond to lower utility than points along indifference curve I2. D. some, but not all, points on indifference curve I1 will correspond to higher utility than points along indifference curve I2.