A market situation in which a large number of firms produce similar but not identical products is
A) a collusive market structure.
B) competitive monopoly.
C) a homogeneous market.
D) monopolistic competition.
Answer: D
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Which of the following is a government-inhibited good?
A) a lighthouse B) national defense C) public education D) cocaine
LISA BETH Mustard Company undertakes an advertising campaign and finds that within the industry's relevant price range, the price elasticity of demand for its own mustard fell from 3.5 to 0.94 . As a result, we would expect that LISA BETH
a. would raise its price to increase total revenue b. would cut its price to increase total revenue c. would increase output to increase total revenue d. would increase output to reduce average total cost e. operates in a perfectly competitive market
Rent seeking
a. often entails large opportunity costs. b. prevents waste of resources. c. often promotes fairness in distribution of resources. d. cannot occur in a planned economy.
The following data show the relationship between the number of drivers who leave for work at 8 a.m., their average commute time, and their marginal benefit of commuting. Number of DriversWho Leave at 8 a.m.AverageCommute TimeMarginalBenefit10030 minutes$1020065 minutes$8300110 minutes$4400170 minutes$3500260 minutes$1If commuters view highway use as having a price of zero, then one can predict that ________ drivers will leave for downtown at 8:00 a.m.
A. 200 B. 500 C. 400 D. 300