With respect to monopolistic competition,
a. both the business-stealing externality and the product-variety externality are positive externalities.
b. the business-stealing externality is a positive externality, while the product-variety externality is a negative externality.
c. the business-stealing externality is a negative externality, while the product-variety externality is a positive externality.
d. both the business-stealing externality and the product-variety externality are negative externalities.
c
You might also like to view...
The Social Security program is unique in that employees can _____ the amount shown on their W-2 form and find out _____
a. look at; their share of the cost of Social Security b. double; their annual contributions to their retirement c. look at; their annual contributions to their retirement d. double; their share of the cost of Social Security
A quota limits:
A. Imports and allows domestic producers to raise the price. B. Domestic output and allows import producers to raise the price. C. Imports and reduces the domestic price. D. Domestic output and reduces the domestic price.
A liquid trap can be avoided if the central bank:
A. charges banks fees for keeping reserves. B. pays interest on bank deposits at banks. C. pays interest on reserves. D. charges banks fees for making loans.
According to the theory of efficient markets:
A. investors use rules of thumb to make choices about which stocks to buy and sell. B. investors are able to use forecasts based on the dividend-discount model to generate above- average returns. C. the stock price should remain constant. D. a portfolio manager who charges no commission should not, on average, outperform an individual investor with access to the same funds.