“Pure competition or pure monopoly industries will tend to be one-price industries. Monopolistic competition, however, is a multiprice industry.” Explain
What will be an ideal response?
Monopolistic competition has the fundamental feature of product differentiation. This gives each firm a slight degree of monopolistic control over price. Consumers have preferences for the products or services of specific sellers and within limits will pay a higher price to satisfy those preferences.In pure competition the demand curve facing each individual seller is perfectly elastic because all products are standardized. The seller and buyer must accept the market price in buying and selling. At the opposite extreme, a pure monopoly is the only seller and so is able to set the price.
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The basis for international trade is
a. established trade patterns b. the size of gold holdings of two countries c. shipping and transportation costs d. absolute advantage e. comparative advantage
What's the relationship between total utility (TU) and marginal utility (MU)?
a. MU of a good is the sum of its TU, assuming that TU is positive b. MU is the change in TU divided by the change in quantity c. MU is TU divided by the quantity of goods consumed d. TU of a good is the sum of all changes in the MUs of that good e. MU = TU as long as the change in TU is constant
In which system are decisions made by thousands of people who have information about resources, production technology and consumer desires?
A. market system B. centrally planned system C. command system D. socialist system
What requirement does the PPACA place on individuals?
What will be an ideal response?