A significant difference between a monopolistically competitive firm and a purely competitive firm is that the:
A. former does not seek to maximize profits.
B. latter recognizes that price must be reduced to sell more output.
C. former sells similar, although not identical, products.
D. former's demand curve is perfectly inelastic.
Answer: C
You might also like to view...
The government sector balance is equal to net taxes ________ government expenditure on goods and services
If that number is ________, a government sector surplus is lent to other sectors; if that number is ________, borrowing from other sectors must finance a government deficit. A) plus; positive; negative B) minus; negative; positive C) minus; negative; negative D) minus; positive; positive E) minus; positive; negative
A firm's marginal factor cost describes
A) the increase in the firm's total revenue as one more unit of output is sold. B) the change in total fixed cost that results from hiring one more unit of input. C) the change in total variable cost that results from the production of an extra unit of output. D) the change in total cost that results from using one more unit of an input.
In an economic system with privately owned, profit-maximizing banks, there will always be a difference between
a. private profits and social profits. b. bank profits and other corporate profits. c. bank profits and macroeconomic objectives. d. bank profits and government profits.
In a competitive price-searcher market, the firms will
a. be able to choose their price, and the entry barriers into the market will be low. b. be able to choose their price, and the entry barriers into the market will be high. c. have to accept the market price for their product, and the entry barriers into the market will be low. d. have to accept the market price for their product, and the entry barriers into the market will be high.