A monopolistically competitive market
a. usually has too many firms, reducing the economic profit of each firm to zero.
b. usually has too few firms, reducing the product variety for consumers.
c. may have too many or too few firms, and the government can intervene to achieve the optimal number of firms.
d. may have too many or too few firms, but the government can do little to rectify the situation.
d
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Currently, the United States has a quota on the amount of sugar that is allowed to be imported into the United States. What would happen to the price of sugar in the United States if the quota was removed? What would happen to U.S. consumption and U
S. production of sugar?
In the United States from 1981 to 2013, deaths from diabetes increased largely due to the effects of
A) a larger immigrant population. B) increasing obesity. C) stress in the workplace. D) foreign-produced insulin.
If butter and margarine are substitute goods, an increase in the price of butter is most likely to:?
Exhibit 21-7 Foreign exchange market for U.S. dollars and British pounds
?
Which of the following could cause the dollar-pound exchange rates to change as shown in Exhibit 21-7?
A. American goods become more popular in Great Britain. B. British incomes rise, while U.S. incomes remain unchanged. C. The U.S. price level rises, while the British price level remains unchanged. D. The U.S. real interest rate rises, while the British real interest rate remains unchanged.