Eco 2023 Final UCF Tarek

question

Microeconomics

answer

focuses on how governments, individuals, and businesses make decisions when faced with scarcity

question

Macroeconomics

answer

the study of the economy at the large-scale level, examining total output, the price level, and other aggregate measures in the economy

question

Resources are

answer

relatively scarce in all countries and the foundation of all productive activity

question

Resource categories

answer

land, labor, capital, and entrepreneurial ability

question

Land

answer

natural resources used in production and referred to as gifts of nature

question

Labor

answer

all physical and mental activity devoted to producing goods and services

question

Capital

answer

the tools, machinery, infrastructure, and knowledge used to produce goods and services

question

Entrepreneurial Ability

answer

the talent or ability to combine land, labor, and capital to produce goods and services

question

A recurring theme in economics is that

answer

people have unlimited economic wants but limited resources

question

Scarcity

answer

a condition that results from the inability of limited resources to satisfy unlimited wants

question

Opportunity Cost

answer

the value of the next best forgone alternative; the value of the opportunity that you gave up when you chose one activity or opportunity instead of another

question

Economic reasoning is based on the premise that:

answer

all decisions or actions have a cost associated with them

question

Role of Incentives

answer

shape the behavior of people, economists believe that if a behavior receives a reward people will do more of it and vice versa

question

To say that people respond to incentives is to say that

answer

changes in benefits or changes in costs influence people's decisions and their behavior

question

Assumptions for Decision Making

answer

Self-interest, marginal decision making, and optimization

question

Self-Interest

answer

the idea that people choose to do the things that interest them

question

Marginal Decision Making

answer

The process of making choices in increments by evaluating the additional, or marginal, benefit against the additional, or marginal cost of an action.

question

Optimization

answer

The idea that people make choices in order to maximize the overall benefit, or utility, of an action subject to its cost

question

A rational decision

answer

results from the comparison of marginal benefit and marginal cost

question

Marginal Benefit

answer

the additional benefit associated with one more unit of an activity

question

Marginal Cost

answer

the additional cost associated with one more unit of an activity

question

When studying human behavior, economists assume rational self-interest. This means that:

answer

people make decisions based on some desired outcome

question

Michelle wants to purchase a new phone. Michelle will purchase the new phone if:

answer

the marginal benefit of the phone is greater than it's marginal cost

question

The main significance of the equilibrium between marginal benefit and marginal cost is:

answer

a rational decision has been made

question

A production possibilities frontier (PPF) illustrates which of the following concepts?

answer

opportunity cost

question

If Angela spends all her time making pies she can make 20 each day, whereas if she spends all her time making cakes she can only make 10 each day. What is the opportunity cost of making a cake?

answer

2 pies

question

Absolute Advantage is found by comparing different producers:

answer

input requirements per unit of output

question

Suppose Lou gives up the production of 50 bikes to make 1 car and Sally gives up the production of 75 bikes to make 1 car. Who has the comparative advantage in making cars?

answer

Lou (because Lou has a lower opportunity cost of making a car)

question

The theory of comparative advantage states that countries gain from trade because:

answer

if each country specializes in producing the products it is best suited to produce, the world output can rise

question

Which of the following influence the terms of trade?

answer

different opportunity costs of the parties involved

question

Specialization

answer

results in a more efficient use of resources

question

In the circular flow diagram, which of the following flows is correct?

answer

goods and services (products) flow from businesses to the goods and services market

question

The most important purpose of a market is to

answer

bring buyers and sellers together so they can trade

question

Suppose you have only $20 to spend on gasoline each week. If the price of gasoline is $2 a gallon how many gallons can you purchase?

answer

10 gallons (20/2=10)

question

Now suppose the price of gasoline rises from $2 per gallon to $4. You still have $20 to spend on gas each week, but now how many gallons can you purchase?

answer

5 gallons (10/2=5, 10 because of the price increase so the amount of gallons decreases)

question

When the Economics Department serves all you can eat ice cream at its annual spring student recruiting event, you eat three ice cream cones. You enjoy the first, the second is just okay and the third is tasteless. This is an example of

answer

Diminishing Marginal Utility

question

In understanding and analyzing market demand, we focus on how much all buyers are

answer

willing and able to buy at different prices

question

When economists say that the demand for a product has decreased, they mean that

answer

consumers are now willing and able to buy less of this product at each possible price

question

Inferior Good

answer

as income increases, demand decreases

question

Normal Good

answer

as income decreases, demand also decreases

question

On Tuesday a movie theater discounts tickets to all shows. What would we expect to see happen to popcorn on Tuesday's?

answer

Increased demand for popcorn

question

An increase in the price of dinners at fancy restaurants would likely cause the demand for babysitters to ________. This is because fancy dinners and babysitting services are likely ________.

answer

decrease; complements

question

How does market supply differ from individual supply?

answer

market supply is the sum of all individual suppliers

question

Which of the following describes the relationship between price and quantity supplied

answer

it is a direct relationship

question

Which of the following scenarios will not cause an increase in supply

answer

the price of the product decreases

question

Which of the following statements does not describe equilibrium?

answer

equilibrium is a goal that is seldom achieved in the real world

question

For a price ceiling to be binding it must:

answer

be lower than the equilibrium price

question

For a price floor to be binding it must:

answer

be higher than the equilibrium price

question

Taxes on products:

answer

increase the marginal cost for producers

question

Michael buys a handmade sweater for $60, although he was willing to pay $85. The minimum acceptable price to the seller, Susan, was $45. Michael experiences a:

answer

consumer surplus of $25 (85-60) and Susan experiences a producer surplus of $15 (60-45)

question

Deadweight Loss (DWL)

answer

occurs when the price paid by buyers or received by sellers does not equal the equilibrium price

question

A deadweight loss __________ as tax rates change.

answer

changes

question

Suppose the equilibrium price is $50. If the actual price paid by the buyer is $60 for one item and the minimum acceptable price to the seller is $40 then:

answer

there is a deadweight loss

question

Productive Efficiency

answer

means producing goods and services at the lowest average total cost

question

Allocative Efficiency

answer

means producing the right amount of a good or service and it occurs where the marginal benefit equals the marginal cost

question

Which of the following is not correct when describing allocative efficiency?

answer

it occurs when firms produce at the lowest possible average total cost

question

If the market is in equilibrium, which of the following occurs?

answer

gains from trade are maximized m, economic surplus is maximized, allocative efficiency is achieved and productive efficiency is achieved

question

Which of the following correctly describes the social welfare impact of a price ceiling

answer

a deadweight loss occurs

question

If a price ceiling is instituted then

answer

total surplus decreases

question

If a price floor is instituted then

answer

total surplus decreases

question

Which of the following correctly describes the social welfare impact of a price floor?

answer

total surplus is decreased

question

An excise tax is

answer

fixed

question

Without taxes, a market moves to ________ and ________ surplus is maximized

answer

equilibrium; economic

question

Elasticity

answer

is a term economists use to measure the sensitivity or responsiveness to a change in price

question

How is the slope of a linear demand curve different from its elasticity

answer

along a linear demand curve, elasticity changes

question

If the change in price is 20% and the change in quantity demanded is 10% what type of elasticity is present

answer

inelastic (10%/20%=.5 if less than 1 then it's inelastic)

question

If the price of elasticity of demand for a product is _________ it is considered elastic

answer

greater than 1

question

Which of the following statements is correct when the price elasticity of demand is inelastic

answer

the elasticity coefficient is less than 1

question

Consumers can be ________ in their demand for a product when many substitutes exist

answer

elastic

question

The demand for necessities tends to be

answer

inelastic

question

Which is more elastic in demand

answer

having cable television service (luxury not a need)

question

Cross-price elasticity identifies goods as substitutes when:

answer

the sign of the coefficient or result of the calculation is positive

question

Cross-price elasticity identifies goods as complements when:

answer

the sign of the coefficient or result of the calculation negative

question

Which of the following is not correct regarding income elasticity of demand

answer

it measures the response of consumer demand to changes in the price of a related good

question

If the change in price is 2% and the change in quantity supplied is 10% supply is

answer

elastic (10%/2%=5 greater than 1)

question

The most important determinant of price elasticity of supply is:

answer

the length of time is available to the producer to make adjustments

question

Which of the following is not true for the price elasticity of supply

answer

it has the same determinants as price elasticity of demand

question

Which of the following is true for suppliers in the short run

answer

suppliers can change employees and raw materials

question

The price elasticity of supply measures:

answer

how responsive the quantity of a good supplied is to changes in its own price

question

Explicit Costs

answer

are monetary payments made by individuals, firms, and governments for the use of land, labor, capital and entrepreneurial ability owned by others

question

Implicit Costs

answer

are the opportunity costs of using owned resources and costs for which no monetary payment is explicitly made

question

Generally, accounting profits are

answer

greater than economic profits, because accounting profits do not consider implicit costs.

question

Marginal Product:

answer

usually increases then decreases and may become negative

question

When total product is rising:

answer

marginal product is positive

question

Average fixed cost

answer

declines continually as output expands

question

Average total cost is _______ divided by the number of units of output

answer

total cost

question

Marginal cost describes a change in _______ when output is expanded by one more unit

answer

total cost

question

Average total cost

answer

is the sum of average fixed cost and average variable cost or total cost divided by the number of units of output produced

question

Marginal cost

answer

is the extra or additional cost associated with producing an additional unit of output

question

Average variable cost

answer

is total variable cost divided by the number of units of output produced

question

The marginal cost curve crosses the

answer

average variable and average total cost curves at their lowest points

question

Which of the following scenarios does not illustrate a long run adjustment

answer

a local Starbucks hires two new employees

question

Which of the following statements describes a difference between the short run and long run

answer

some resources are fixed in the short run and all resources are variable in the long run

question

One reason a firm may experience economies of scale is:

answer

the firm experienced specialization in labor and management

question

A firm is experiencing diseconomies of scale if

answer

costs increase as output expands

question

Characteristics of a perfect competition

answer

1. Many buyers and many sellers.
2. The goods offered for sale are largely the same.
3. Firms can freely enter or exit the market.

question

Which of the following statements does not describe a perfectly competitive market

answer

price is greater than marginal revenue

question

A perfectly competitive firm:

answer

can sell as much output as it wants at the equilibrium price

question

Price for a perfectly competitive seller equals:

answer

marginal revenue

question

In the short run a perfectly competitive firm calculates the profit maximizing production output by equating:

answer

marginal revenue and marginal cost

question

In a perfectly competitive industry firms seek to maximize

answer

total profit

question

In the short run if ATC is greater than price at the output level where MC=MR then:

answer

the firm may be able to minimize losses

question

A perfectly competitive firms short run supply curve is at its lowest point when MC equals the minimum point of

answer

the average variable cost curve

question

In the long run if ATC equals price at the output level where MC=MR then

answer

the firm will earn a normal profit

question

In the long run perfectly competitive firms achieve:

answer

allocative and productive efficiency

question

Which of the following statements describes what perfectly competitive firms experience in the long run

answer

price equals the minimum point on ATC

question

Which of the following statements describes a perfectly competitive market under conditions of constant cost

answer

the market supply curve becomes perfectly elastic in the long run

question

Characteristics of a pure monopoly

answer

single seller, no close substitutes, price maker, blocked entry

question

Which of the following is not a characteristic of monopoly

answer

it's demand curve is perfectly elastic

question

A monopolists demand curve is

answer

the same as the market demand curve

question

A monopolists marginal revenue curve:

answer

lies below the demand curve

question

Which of the following statements explains why a pure monopolists marginal revenue is less than price

answer

it must lower price to sell more output and the lower price applies to all units of output sold

question

Assuming the same costs, a monopoly will

answer

produce less and charge a higher price than a perfectly competitive firm.

question

The MR=MC rule is used to analyze

answer

both monopoly and perfect competition profit maximization

question

Which of the following statements explains when a natural monopoly occurs

answer

economies of sale occur as ATC decreases over a wide range of output

question

Regulation of natural monopolies often causes a price ceiling price that

answer

achieves allocative efficiency and may result in government subsidies

question

Characteristics of monopolistically competitive firm

answer

1. Made up of a large number of firms
2. Sell products that are alike but differentiated
3. Firms can easily enter and exit
4. Have some control over price

question

In monopolistically competitive markets entry barriers

answer

are more prevalent than in perfectly competitive markets but less than monopoly markets

question

It is more difficult to analyze a monopolistically competitive market than a perfectly competitive market because in a monopolistically competitive market:

answer

products are differentiated which results in non price competition

question

Which of the following explains a similarity between perfect competition and monopolistic competition

answer

firms in these models find it easy to enter a market

question

In which of the following markets are demand and marginal revenue equal

answer

perfect competition only

question

In the short run monopolistically competitive firms:

answer

can earn an economic profit, minimize a loss, earn a normal profit and shut down

question

Oligopolies produce:

answer

standard products and differentiated products

question

In which market model does mutual interdependence exist

answer

oligopoly

question

If This Helped You Feel Free to Venmo:) @Jordan-Rembert

answer

...

1 of 125

question

Microeconomics

answer

focuses on how governments, individuals, and businesses make decisions when faced with scarcity

question

Macroeconomics

answer

the study of the economy at the large-scale level, examining total output, the price level, and other aggregate measures in the economy

question

Resources are

answer

relatively scarce in all countries and the foundation of all productive activity

question

Resource categories

answer

land, labor, capital, and entrepreneurial ability

question

Land

answer

natural resources used in production and referred to as gifts of nature

question

Labor

answer

all physical and mental activity devoted to producing goods and services

question

Capital

answer

the tools, machinery, infrastructure, and knowledge used to produce goods and services

question

Entrepreneurial Ability

answer

the talent or ability to combine land, labor, and capital to produce goods and services

question

A recurring theme in economics is that

answer

people have unlimited economic wants but limited resources

question

Scarcity

answer

a condition that results from the inability of limited resources to satisfy unlimited wants

question

Opportunity Cost

answer

the value of the next best forgone alternative; the value of the opportunity that you gave up when you chose one activity or opportunity instead of another

question

Economic reasoning is based on the premise that:

answer

all decisions or actions have a cost associated with them

question

Role of Incentives

answer

shape the behavior of people, economists believe that if a behavior receives a reward people will do more of it and vice versa

question

To say that people respond to incentives is to say that

answer

changes in benefits or changes in costs influence people's decisions and their behavior

question

Assumptions for Decision Making

answer

Self-interest, marginal decision making, and optimization

question

Self-Interest

answer

the idea that people choose to do the things that interest them

question

Marginal Decision Making

answer

The process of making choices in increments by evaluating the additional, or marginal, benefit against the additional, or marginal cost of an action.

question

Optimization

answer

The idea that people make choices in order to maximize the overall benefit, or utility, of an action subject to its cost

question

A rational decision

answer

results from the comparison of marginal benefit and marginal cost

question

Marginal Benefit

answer

the additional benefit associated with one more unit of an activity

question

Marginal Cost

answer

the additional cost associated with one more unit of an activity

question

When studying human behavior, economists assume rational self-interest. This means that:

answer

people make decisions based on some desired outcome

question

Michelle wants to purchase a new phone. Michelle will purchase the new phone if:

answer

the marginal benefit of the phone is greater than it's marginal cost

question

The main significance of the equilibrium between marginal benefit and marginal cost is:

answer

a rational decision has been made

question

A production possibilities frontier (PPF) illustrates which of the following concepts?

answer

opportunity cost

question

If Angela spends all her time making pies she can make 20 each day, whereas if she spends all her time making cakes she can only make 10 each day. What is the opportunity cost of making a cake?

answer

2 pies

question

Absolute Advantage is found by comparing different producers:

answer

input requirements per unit of output

question

Suppose Lou gives up the production of 50 bikes to make 1 car and Sally gives up the production of 75 bikes to make 1 car. Who has the comparative advantage in making cars?

answer

Lou (because Lou has a lower opportunity cost of making a car)

question

The theory of comparative advantage states that countries gain from trade because:

answer

if each country specializes in producing the products it is best suited to produce, the world output can rise

question

Which of the following influence the terms of trade?

answer

different opportunity costs of the parties involved

question

Specialization

answer

results in a more efficient use of resources

question

In the circular flow diagram, which of the following flows is correct?

answer

goods and services (products) flow from businesses to the goods and services market

question

The most important purpose of a market is to

answer

bring buyers and sellers together so they can trade

question

Suppose you have only $20 to spend on gasoline each week. If the price of gasoline is $2 a gallon how many gallons can you purchase?

answer

10 gallons (20/2=10)

question

Now suppose the price of gasoline rises from $2 per gallon to $4. You still have $20 to spend on gas each week, but now how many gallons can you purchase?

answer

5 gallons (10/2=5, 10 because of the price increase so the amount of gallons decreases)

question

answer

Diminishing Marginal Utility

question

In understanding and analyzing market demand, we focus on how much all buyers are

answer

willing and able to buy at different prices

question

When economists say that the demand for a product has decreased, they mean that

answer

consumers are now willing and able to buy less of this product at each possible price

question

Inferior Good

answer

as income increases, demand decreases

question

Normal Good

answer

as income decreases, demand also decreases

question

On Tuesday a movie theater discounts tickets to all shows. What would we expect to see happen to popcorn on Tuesday's?

answer

Increased demand for popcorn

question

An increase in the price of dinners at fancy restaurants would likely cause the demand for babysitters to ________. This is because fancy dinners and babysitting services are likely ________.

answer

decrease; complements

question

How does market supply differ from individual supply?

answer

market supply is the sum of all individual suppliers

question

Which of the following describes the relationship between price and quantity supplied

answer

it is a direct relationship

question

Which of the following scenarios will not cause an increase in supply

answer

the price of the product decreases

question

Which of the following statements does not describe equilibrium?

answer

equilibrium is a goal that is seldom achieved in the real world

question

For a price ceiling to be binding it must:

answer

be lower than the equilibrium price

question

For a price floor to be binding it must:

answer

be higher than the equilibrium price

question

Taxes on products:

answer

increase the marginal cost for producers

question

Michael buys a handmade sweater for $60, although he was willing to pay $85. The minimum acceptable price to the seller, Susan, was $45. Michael experiences a:

answer

consumer surplus of $25 (85-60) and Susan experiences a producer surplus of $15 (60-45)

question

Deadweight Loss (DWL)

answer

occurs when the price paid by buyers or received by sellers does not equal the equilibrium price

question

A deadweight loss __________ as tax rates change.

answer

changes

question

Suppose the equilibrium price is $50. If the actual price paid by the buyer is $60 for one item and the minimum acceptable price to the seller is $40 then:

answer

there is a deadweight loss

question

Productive Efficiency

answer

means producing goods and services at the lowest average total cost

question

Allocative Efficiency

answer

means producing the right amount of a good or service and it occurs where the marginal benefit equals the marginal cost

question

Which of the following is not correct when describing allocative efficiency?

answer

it occurs when firms produce at the lowest possible average total cost

question

If the market is in equilibrium, which of the following occurs?

answer

gains from trade are maximized m, economic surplus is maximized, allocative efficiency is achieved and productive efficiency is achieved

question

Which of the following correctly describes the social welfare impact of a price ceiling

answer

a deadweight loss occurs

question

If a price ceiling is instituted then

answer

total surplus decreases

question

If a price floor is instituted then

answer

total surplus decreases

question

Which of the following correctly describes the social welfare impact of a price floor?

answer

total surplus is decreased

question

An excise tax is

answer

fixed

question

Without taxes, a market moves to ________ and ________ surplus is maximized

answer

equilibrium; economic

question

Elasticity

answer

is a term economists use to measure the sensitivity or responsiveness to a change in price

question

How is the slope of a linear demand curve different from its elasticity

answer

along a linear demand curve, elasticity changes

question

If the change in price is 20% and the change in quantity demanded is 10% what type of elasticity is present

answer

inelastic (10%/20%=.5 if less than 1 then it's inelastic)

question

If the price of elasticity of demand for a product is _________ it is considered elastic

answer

greater than 1

question

Which of the following statements is correct when the price elasticity of demand is inelastic

answer

the elasticity coefficient is less than 1

question

Consumers can be ________ in their demand for a product when many substitutes exist

answer

elastic

question

The demand for necessities tends to be

answer

inelastic

question

Which is more elastic in demand

answer

having cable television service (luxury not a need)

question

Cross-price elasticity identifies goods as substitutes when:

answer

the sign of the coefficient or result of the calculation is positive

question

Cross-price elasticity identifies goods as complements when:

answer

the sign of the coefficient or result of the calculation negative

question

Which of the following is not correct regarding income elasticity of demand

answer

it measures the response of consumer demand to changes in the price of a related good

question

If the change in price is 2% and the change in quantity supplied is 10% supply is

answer

elastic (10%/2%=5 greater than 1)

question

The most important determinant of price elasticity of supply is:

answer

the length of time is available to the producer to make adjustments

question

Which of the following is not true for the price elasticity of supply

answer

it has the same determinants as price elasticity of demand

question

Which of the following is true for suppliers in the short run

answer

suppliers can change employees and raw materials

question

The price elasticity of supply measures:

answer

how responsive the quantity of a good supplied is to changes in its own price

question

Explicit Costs

answer

are monetary payments made by individuals, firms, and governments for the use of land, labor, capital and entrepreneurial ability owned by others

question

Implicit Costs

answer

are the opportunity costs of using owned resources and costs for which no monetary payment is explicitly made

question

Generally, accounting profits are

answer

greater than economic profits, because accounting profits do not consider implicit costs.

question

Marginal Product:

answer

usually increases then decreases and may become negative

question

When total product is rising:

answer

marginal product is positive

question

Average fixed cost

answer

declines continually as output expands

question

Average total cost is _______ divided by the number of units of output

answer

total cost

question

Marginal cost describes a change in _______ when output is expanded by one more unit

answer

total cost

question

Average total cost

answer

is the sum of average fixed cost and average variable cost or total cost divided by the number of units of output produced

question

Marginal cost

answer

is the extra or additional cost associated with producing an additional unit of output

question

Average variable cost

answer

is total variable cost divided by the number of units of output produced

question

The marginal cost curve crosses the

answer

average variable and average total cost curves at their lowest points

question

Which of the following scenarios does not illustrate a long run adjustment

answer

a local Starbucks hires two new employees

question

Which of the following statements describes a difference between the short run and long run

answer

some resources are fixed in the short run and all resources are variable in the long run

question

One reason a firm may experience economies of scale is:

answer

the firm experienced specialization in labor and management

question

A firm is experiencing diseconomies of scale if

answer

costs increase as output expands

question

Characteristics of a perfect competition

answer

1. Many buyers and many sellers.
2. The goods offered for sale are largely the same.
3. Firms can freely enter or exit the market.

question

Which of the following statements does not describe a perfectly competitive market

answer

price is greater than marginal revenue

question

A perfectly competitive firm:

answer

can sell as much output as it wants at the equilibrium price

question

Price for a perfectly competitive seller equals:

answer

marginal revenue

question

In the short run a perfectly competitive firm calculates the profit maximizing production output by equating:

answer

marginal revenue and marginal cost

question

In a perfectly competitive industry firms seek to maximize

answer

total profit

question

In the short run if ATC is greater than price at the output level where MC=MR then:

answer

the firm may be able to minimize losses

question

A perfectly competitive firms short run supply curve is at its lowest point when MC equals the minimum point of

answer

the average variable cost curve

question

In the long run if ATC equals price at the output level where MC=MR then

answer

the firm will earn a normal profit

question

In the long run perfectly competitive firms achieve:

answer

allocative and productive efficiency

question

Which of the following statements describes what perfectly competitive firms experience in the long run

answer

price equals the minimum point on ATC

question

Which of the following statements describes a perfectly competitive market under conditions of constant cost

answer

the market supply curve becomes perfectly elastic in the long run

question

Characteristics of a pure monopoly

answer

single seller, no close substitutes, price maker, blocked entry

question

Which of the following is not a characteristic of monopoly

answer

it's demand curve is perfectly elastic

question

A monopolists demand curve is

answer

the same as the market demand curve

question

A monopolists marginal revenue curve:

answer

lies below the demand curve

question

Which of the following statements explains why a pure monopolists marginal revenue is less than price

answer

it must lower price to sell more output and the lower price applies to all units of output sold

question

Assuming the same costs, a monopoly will

answer

produce less and charge a higher price than a perfectly competitive firm.

question

The MR=MC rule is used to analyze

answer

both monopoly and perfect competition profit maximization

question

Which of the following statements explains when a natural monopoly occurs

answer

economies of sale occur as ATC decreases over a wide range of output

question

Regulation of natural monopolies often causes a price ceiling price that

answer

achieves allocative efficiency and may result in government subsidies

question

Characteristics of monopolistically competitive firm

answer

1. Made up of a large number of firms
2. Sell products that are alike but differentiated
3. Firms can easily enter and exit
4. Have some control over price

question

In monopolistically competitive markets entry barriers

answer

are more prevalent than in perfectly competitive markets but less than monopoly markets

question

It is more difficult to analyze a monopolistically competitive market than a perfectly competitive market because in a monopolistically competitive market:

answer

products are differentiated which results in non price competition

question

Which of the following explains a similarity between perfect competition and monopolistic competition

answer

firms in these models find it easy to enter a market

question

In which of the following markets are demand and marginal revenue equal

answer

perfect competition only

question

In the short run monopolistically competitive firms:

answer

can earn an economic profit, minimize a loss, earn a normal profit and shut down

question

Oligopolies produce:

answer

standard products and differentiated products

question

In which market model does mutual interdependence exist

answer

oligopoly

question

If This Helped You Feel Free to Venmo:) @Jordan-Rembert

answer

...

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