The meaning of interdependence in a monopolistically competitive market is
A) that it is difficult for firms to get together to collude.
B) that products produced by firms will be good substitutes.
C) that firms will not take into account the reaction of rival firms.
D) that price rigging commonly occurs.
C
You might also like to view...
Which one of the following techniques is an example of the replacement cost method of economic valuation?
a. Contingent valuation b. Hedonic pricing c. Travel cost method d. Habitat equivalency analysis e. Cost-effectiveness valuation
Suppose that the wage for drive-thru clerks is $7 an hour at Burger King and $6.50 at McDonald's. The jobs are alike in all other respects. We would expect
a. an increase in the supply of and demand for drive-thru clerks at Burger King b. an increase in the supply and a decrease in the demand for drive-thru clerks at Burger King c. a decrease in the supply of drive-thru clerks at Burger King but no change in demand d. an increase in the supply of drive-thru clerks at Burger King but no change in demand e. a decrease in the supply of and demand for drive-thru clerks at Burger King