Company X sells sugar to company Y for $50,000. Company Y uses the sugar to make chocolate bars, selling them to consumers for $150,000. The total contribution to GDP is:
A) $200,000.
B) $100,000.
C) $30,000.
D) $150,000.
E) $50,000.
Answer: D) $150,000.
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Which of the following industries does not fit the natural monopoly model?
A. Fast food restaurants B. Natural gas C. Electricity D. Cable TV
A monopolistically competitive industry is like a purely competitive industry in that
A. each industry produces a standardized product. B. nonprice competition is a feature in both industries. C. firms in both industries face a horizontal demand curve. D. neither industry has significant barriers to entry.
Refer to the table above. The opportunity cost per dollar of value added in stitching shoes by workers in Eduland is ________
A) $0.25 B) $0.50 C) $2 D) $4
Product differentiation in a monopolistically competitive market always entails more costs than benefits.
Indicate whether the statement is true or false.