The key difference between monopolistic competition and perfect competition is that in monopolistic competition the tangency of
a. AC and the demand curve occurs along the negatively sloped part of AC.
b. the demand curve and AC occurs at the minimum point of the AC curve.
c. AC and the demand curve occurs along the positively sloped part of AC.
d. MC and MR at the optimum output.
a
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What will be an ideal response?
Why has the Federal Reserve chairman often been called the second most important person in terms of affecting the economy?
A) The Fed chairman has veto power over all federal spending. B) The Fed is in control of monetary policy. C) The Fed chairman draws the second highest salary of any official of the federal government. D) The Fed has regulatory power over all financial markets.
The three central questions for efficient organizational design include all EXCEPT
a. does the decision maker have the relevant information? b. is the decision maker in a supervisory role? c. who is making the decision? d. does the decision maker have an incentive to make a good decision?
The term oligopoly indicates:
A. a one-firm industry. B. many producers of a differentiated product. C. a few firms producing either a differentiated or a homogeneous product. D. an industry whose four-firm concentration ratio is low.