In a monopolistically competitive market, having a large number of firms in the market means that
A) no firm attempts to take into account the reaction of rival firms.
B) individual firms will have a large portion of the market giving them monopoly power.
C) firms will get together and collude because this will be the only way to earn monopoly profits.
D) firms will cooperate with each other to drive competitors out of the market.
Answer: A
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A cause of the decline in the velocity of money during the 2007-2009 financial crisis was a result of:
A. the fiscal stimulus provided by the U.S. government. B. the lowering of the discount rate by the Fed. C. an increase in uncertainty. D. the use of unconventional policy tools by the Fed.
The largest single holder of the U.S. national debt after the U.S. government is
A. The foreign sector. B. U.S. businesses. C. The private sector. D. None of the choices are correct.
The unfunded nature of the Social Security system has no effect on investment
a. True b. False
Answer the following statements true (T) or false (F)
1. Derived demand for a resource stems from the demand for the good or service it produces. 2. The MRP is the additional revenue obtained by producing one more unit of output. 3. In perfect product competition, the output price is fixed to the firm. 4. MRP declines because MP declines. 5. Firms hire workers up to the point where MRP = the wage rate.