The competitive dimension of monopolistic competition is that
A. Each firm in the industry will lose all of its customers if it raises its price.
B. Low barriers to entry tend to push economic profits toward zero.
C. High barriers to entry tend to push economic profits toward zero.
D. Consumers view each firm's products as interchangeable.
Answer: B
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The mechanism of supply and demand is
A. a fundamental tool in both microeconomics and macroeconomics. B. the only real “law” of economics. C. a fundamental tool only in microeconomics. D. a fundamental tool only in macroeconomics.
Declining-block quantity discrimination makes sense if
A) buyers of smaller quantities are more price sensitive than buyers of larger quantities. B) buyers of smaller quantities are less price sensitive than buyers of larger quantities. C) demand for the good is perfectly elastic. D) the lower price for larger quantities encourages all consumers to purchase the larger quantity.
Tariff accounts for 32% of the total government revenue in the U.K. and only 1.2% in India
a. True b. False Indicate whether the statement is true or false
How did states respond to the decline in their economies after the Great Depression?
a. by getting consumers to buy domestically produced goods b. by breaking treaties and discontinuing tariffs c. by enacting last-resort measures