Monopolistic competition and monopoly have all of the following in common EXCEPT
A) P > MC.
B) Firms are price setters.
C) Barriers to entry.
D) MR = MC.
C
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High interest rates contribute to a lower federal budget deficit.
A. True B. False C. Uncertain
A key difference between a Walrasian market and most auction markets is that in most auction markets
A) transactions occur continuously. B) bid prices exceed offer prices. C) only dealers have complete information. D) offer prices exceed bid prices.
The dire predictions about the underfunded nature of Social Security, Medicare, and state and local pensions could be wrong because
A. interest rates may turn out to be higher in the future. B. unemployment rates may turn out to be higher than they are currently predicted to be. C. taxable incomes may turn out to be higher than they are currently predicted to be. D. taxable incomes may turn out to be lower than they are currently predicted to be.
When the government wants to give an exclusive right to one firm to produce a product, it
A) imposes a tariff on imports of the product. B) imposes a quota on imports of the product. C) grants a patent or copyright to an individual or firm. D) uses antitrust laws to keep other firms from entering the market.