To analyze monopolistic competition in trade, we make several assumptions about the market. Which of the following is NOT an assumption of monopolistic competition?
a. many firms in the industry
b. easy entry and exit
c. constant long-run average cost
d. increasing returns to scale, falling long-run average cost
Ans: c. constant long-run average cost
Economics
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In a liquidity trap, the
A) IS curve is vertical. B) IS curve is horizontal. C) LM curve is vertical. D) LM curve is horizontal.
Economics
Would one expect economic growth to be higher or lower in a country that had poorly defined property rights? Why?
What will be an ideal response?
Economics