If firms in a monopolistically competitive market are earning positive profits, then
a. firms will likely be subject to regulation.
b. barriers to entry will be strengthened.
c. some firms will exit the market.
d. new firms will enter the market.
d
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Which of the following things does not have an objective cost?
A) Platinum B) Water C) Ski lift tickets D) Medical equipment E) None of the above has an objective cost.
Which of the following can a firm use to defend a successful product's brand name?
A) The firm can apply for a trademark to ban other firms from using the product's name. B) The firm can increase the amount it spends on advertising for the product. C) The firm can obtain a patent on the brand name. D) The firm can attempt to copyright the brand name.
Since the value of the multiplier is always at least 1, which of the following is correct?
a. The size of the vertical shift in the aggregate expenditure line is always equal to the change in GDP b. The size of the vertical shift in the aggregate expenditure line is always less than the change in GDP c. The size of the vertical shift in the aggregate expenditure line is always greater than the change in GDP d. The size of the vertical shift in the aggregate expenditure line is always equal to or smaller than the change in GDP e. The MPC is always bigger than 1
While monopoly power can be abused, it can also be used beneficially. What are the major pros and cons of largeness in business?
What will be an ideal response?