Suppose an island was considering implementing a cap-and-trade for lobsters. Each person who catches a lobster would need to obtain one permit for…
September 3, 2020
George finds he can wash 10 cars and wax 5 cars in one 8-hour shift. In the same 8-hour shift he could wash 8 cars and wax 6 cars.
September 3, 2020

QUESTION 11

1. Monopolistic competition has three characteristics: a differentiated product, no significant barriers to entry, and few buyers and sellers.

True

False

QUESTION 12

1. Price leadership is generally considered an example of which of the following?

A. tacit collusion

B. explicit collusion

C. a tit for tat strategy

D. uncooperative behavior

E. None of these

QUESTION 13

1. Advertising about superior service is an example of nonprice competition.

True

False

QUESTION 14

1. Under both perfect competition and monopolistic competition, price equals minimum average total cost in the long run.

True

False

QUESTION 15

1. Under monopolistic competition, firms operate with _____.

A. average total cost is greater than its minimum possible value

B. marginal revenue equals marginal cost

C. marginal revenue is greater than marginal cost

D. price is greater than marginal revenue

E. marginal cost is greater than average cost

QUESTION 16

1. Both monopoly and monopolistic competition share which of the following features?

A. Downward sloping demand curve

B. No significant barriers to entry or exit

C. Strategic interdependence

D. None of these

KM
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