Which of the following four-firm concentration ratios is consistent with monopolistic competition?
A) 100 percent
B) 75 percent
C) 25 percent
D) 0 percent
E) 91 percent
C
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In a market characterized by a single seller and many buyers, when is it profitable to increase the value of a product by incurring fixed costs?
Which of the following is not an advantage of the chain weighted CPI over the fixed CPI?
a. the chain-type index includes newer products b. the chain index incorporates the increase in the quality of goods c. the chain index includes discounting and the substitution of products d. the chain index includes the price of the product only at standard prices
Assume a firm closes down in the short run and produces no output. Under these conditions:
A. TVC is positive, but TFC and TC are zero. B. TFC and TC are positive, but TVC is zero. C. TFC, TVC, and TC will all be positive. D. TFC is positive, but TVC and TC are zero.
The fact that the behavior of one firm depends on the behavior of other firms is what differentiates oligopoly markets from the other three market structure types (perfect competition, monopoly, and monopolistic competition).
Answer the following statement true (T) or false (F)