Which of the following is not a characteristic of the monopolistic competition market structure?
a. Many sellers, each small in size relative to the overall market.
b. Few sellers.
c. Differentiated product.
d. Easy, low-cost entry and exit.
b
You might also like to view...
Economists estimated that the cross-price elasticity of demand for beer and wine is -0.83 and the income elasticity of wine is 5.03. This means that
A) beer and wine are substitutes and wine is a luxury good. B) beer and wine are substitutes and wine is an inferior good. C) beer and wine are complements and wine is a luxury good. D) beer and wine are complements and wine is an inferior good.
Which of the following is the best example of complements?
a. milk and cheese b. coffee and tea c. CDs and DVDs d. hiking boots and athletic shoes e. film and film processing (developing)
What is meant by the term inflation bias?
A) when policymakers allow exchange rates to continually depreciate and are willing to accept higher rates of inflation B) when policymakers accept higher rates of inflation and are willing to allow exchange rates to continually depreciate C) when policy makers use expansionary monetary policy for short-term gain, at the expense of higher inflation in the longer run D) when fiscal policymakers use deficit financing to stimulate the economy at the expense of higher long-run inflation
Refer to the graph above. Over the $5-$6 range, the elasticity of supply using the midpoints formula is:
A. 0.88. B. 1.22. C. 1.00. D. 0.22.