The feature that distinguishes monopolistic competition from monopolies and oligopolies is that monopolistically competitive firms
A. are price takers.
B. cannot influence market price by virtue of their size alone.
C. benefit from barriers to entry.
D. do not have price as a decision variable.
Answer: B
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A measure of growth in the standard of living is the growth in
A) population. B) real GDP minus the growth in population. C) real GDP. D) employment. E) population minus the growth in real GDP.
The lon-run aggregate supply curve can be expressed by
A) output as a function of potential output. B) inflation as a function of past inflation. C) inflation as a function of past inflation and output gap. D) output as a function of inflation and output gap.
The argument that rising energy prices caused the decline in U.S. productivity in the 1970s is made less believable due to the
a. falling level of saving in the 1970s. b. falling level of energy prices in the 1980s. c. rising level of energy prices in the 1980s. d. rising level of energy prices in the 1990s.
At a Chicago Bulls game 20,000 tickets were sold at $30 apiece. The game was sold out and some people did not get tickets. This suggests that the selling price:
A. was above equilibrium. B. was below equilibrium. C. was at equilibrium. D. could not have been any higher.