Monopolistic competition entails a deadweight loss to society, even if the firms earn zero economic profits.
Indicate whether the statement is true or false.
Answer: True
You might also like to view...
Suppose a country's net exports equal zero. Which of the following will happen if the volume of imports increases without an increase in the volume of exports?
A) The country will experience a budget surplus. B) The country will experience a budget deficit. C) The country will experience a trade surplus. D) The country will experience a trade deficit.
Household production, such as baking bread at home, is not included in GDP because it
A) has better quality than the bread in the store. B) has lower quality than the bread in the store. C) does not add anything of value to GDP. D) does not involve a market transaction. E) is not really production.
The market demand for wheat is ________ and the demand for wheat produced by an individual farm is ________
A) perfectly elastic; perfectly inelastic B) not perfectly elastic; perfectly elastic C) not perfectly inelastic; inelastic D) elastic; unit elastic
The most important advantages of bigness will be found in industries that show increasing returns to scale.
Answer the following statement true (T) or false (F)