Monopolistically competitive firms can differentiate their products
A) by producing where marginal revenue equals marginal cost.
B) through marketing.
C) by equating price and average total cost.
D) by producing at minimum efficient scale.
B
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Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y ? L and this person has no non-labor income. Assuming a wage rate of $10 per hour, show what happens to the person's labor supply when the person wins a lottery prize of $100 per day
What will be an ideal response?
Cartels are difficult to maintain in the long run because:
A. they are illegal in all industrialized countries. B. individual members may find it profitable to cheat on agreements. C. it is more profitable for the industry to charge a lower price and produce more output. D. entry barriers are insignificant in oligopolistic industries.