Which of the following is NOT an example of a monopolistically competitive market?
A) high fashion clothing
B) medical care
Which of the following is NOT a characteristic of competitive markets?
A) They produce a standardized product.
B) Purchases and sales of individual traders are small relative to the total volume traded.
C) Prices adjust quickly.
D) There are relatively few sellers.
How is a monopolistically competitive firm likely to respond to fluctuations in demand in the short run?
A) by selling more or less at the posted price
B) by changing prices
C) by reducing menu costs
D) by increasing menu costs
A) extracting certain forms of energy from rock formations.
B) deep water drilling for energy with minimal externalities.
C) the reduction of menu costs, thus allowing prices to adjust more freely.
D) breaking down the production of goods, resulting in more competitive markets.