Collusion among firms to raise price is rare in monopolistically competitive markets because
a. there are too many firms
b. there are too few firms
c. there is only one firm
d. products are homogeneous
e. price leadership is used instead
A
You might also like to view...
Saving represents
A) a source of funds for business investment. B) a normal part of the circular flow of income and output. C) an injection to the circular flow of income and output. D) a counter-example to Say's law that the classical economists never considered.
Figure 17-7
The domestic country is Jamaica.
Refer to . With trade, Jamaica
a.
imports 150 calculators.
b.
imports 250 calculators.
c.
exports 100 calculators.
d.
exports 250 calculators.
The FDIC fee system encourages depository institutions to
A. operate their institutions in too conservative a fashion. B. seek only a modest rate of return. C. make riskier loans than they would otherwise. D. reject loans that probably would have been profitable.
Suppose a monopolist faces the demand curve shown below. 
The monopolist maximizes its profits by:
A. producing 35 units, since this is where total revenue is maximized. B. charging $70 for each unit. C. producing the level of output at which marginal revenue equals marginal cost. D. producing the level of output at which marginal revenue minus marginal cost is greatest.