Which of the following is a characteristic of a monopolistically competitive market?I.Firms sell differentiated products.II.Each firm earns a positive economic profit in the long run.III.Firms freely enter and exit the market.
A. II only
B. I and II only
C. I and III only
D. I, II, and III
Answer: C
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An increase in the real interest rate results in which of the following?
A) an increase in the demand for loanable funds B) a decrease in the demand for loanable funds C) an increase in the quantity of loanable funds supplied D) Both B and C will occur as a result of an increase in the real interest rate.
Suppose price increases from $7.00 to $13.00. Using the mid-point formula, the percentage change in price is:
A. .0.6 = 60 percent. B. 0.6 = 60 percent. C. 70 percent. D. 130 percent.
If a country's income is rapidly increasing it must:
A. have a high level of growth. B. have a high level of income. C. have a lot of room to expand. D. be well-endowed with natural resources.
A price increase will always cause a firm's revenue to fall, because they will sell less of the good
a. True b. False Indicate whether the statement is true or false