In the 1920s and 1930s, economists became increasingly aware that there were industries that did not fit the model of perfect competition or pure monopoly. Two separate theories of monopolistic competition resulted. Edward Chamberlin of Harvard published the Theory of Monopolistic Competition in 1933. Chamberlin defined monopolistic competition as
A. a relatively large number of producers offering similar but differentiated products.
B. a market situation in which a large number of firms produce identical products.
C. a relatively small number of producers offering similar but differentiated products.
D. a market situation in which a small number of firms produce similar products.
Answer: A
You might also like to view...
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.
Consider two investors: one is risk-neutral and the other is risk-averse. How do they each assess a risk premium?
What will be an ideal response?
The firm's shutdown point occurs at an output of
A. 100.
B. 175.
C. 250.
D. 300.
The Fed directly sets:
A. the prime interest rate but not the federal funds rate. B. both the federal funds rate and the prime interest rate. C. neither the federal funds rate nor the prime interest rate. D. the discount rate and the prime interest rate.