A monopolistically competitive industry may feature

a. excess capacity.
b. extraordinary profits.
c. product differentiation.
d. All of the above are correct.
e. Only b and c are correct.

d. All of the above are correct.

Economics

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When the marginal product of labor is a maximum, the average product of labor is ________

A) a maximum B) increasing C) decreasing D) equal to marginal product

Economics

Refer to Figure 7-6. Answer the following questions:

1. What would be the equilibrium price and quantity if consumers had to pay the full price of medical services? 2. With insurance acting as a third-party payer, what price will consumers pay for medical service? 3. With insurance acting as a third-party payer, what price will doctors receive for medical service? 4. With insurance acting as a third-party payer, what will be the equilibrium quantity of medical services? 5. With insurance acting as a third-party payer, what will be the value of the deadweight loss?

Economics