Which statement concerning monopolistic competition is false?
A. The monopolistically competitive demand curve is more elastic than the demand curve facing a monopolistic firm.
B. Monopolistic competition is likely to result in a greater variety of product brands than pure competition.
C. Monopolistic competition does not lead to any economic inefficiency since firms in this industry cannot sustain economic profits.
D. Long-run equilibrium under monopolistic competition is achieved where economic profits are zero.
Answer: C
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Which of the following characterizes the market that Chipotle competes in?
A) "Fast-casual" restaurants sell identical products. B) All "fast-casual" restaurants face horizontal demand curves. C) Barriers to entry are low. D) There are a small number of firms.
Which of the following measures are government regulations to increase competition?
A) Government ends the ban on steel imports. B) Government shortens the term of the patent for a drug. C) Government subsidizes firms to enter energy market. D) All of above.
Risk-sharing forms of compensation are beneficial if employee are
A) risk preferring. B) risk neutral. C) risk averse. D) prefer more to less.
The term "human capital" refers to how many people must work to produce a product
a. True b. False Indicate whether the statement is true or false