A major characteristic of monopolistic competition is that prices will be _____.

(A) Unrelated to the type of competition.
(B) Higher than in a true monopoly.
(C) Higher than in perfect competition.
(D) Lower than in perfect competition.

Ans: (C) Higher than in perfect competition.

Economics

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Indicate whether the statement is true or false

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Which feature of the business cycle does the one-period model replicate with shocks to government expenditures?

A) procyclical employment B) procyclical consumption C) procyclical real wages D) countercyclical prices

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