Which statement is true regarding the difference between the demand curves for a monopolistic competitor and a monopolist?
a. A monopolistic competitor’s perceived demand curve is protected by barriers to entry.
b. A monopolistic competitor's perceived demand curve is based on product differentiation and number of competitors.
c. A monopolist’s perceived demand curve is based on product differentiation and number of competitors.
d. A monopolistic competitor's perceived demand curve is the market demand curve.
b. A monopolistic competitor's perceived demand curve is based on product differentiation and number of competitors.
Although both a monopolist and a monopolistic competitor face downward-sloping demand curves, the monopolist’s perceived demand curve is the market demand curve, while the perceived demand curve for a monopolistic competitor is based on the extent of its product differentiation and how many competitors it faces.
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A sales tax imposed on sellers shifts the supply curve leftward for the taxed good because the
A) tax is paid by the seller to the government and is, therefore, like a cost of production. B) tax is actually shifted entirely onto the buyer who can afford only a smaller supply. C) higher price causes entry into the market. D) tax shifts the demand curve leftward.
A nation has a population of 260 million people. Of these, 60 million are retired, in the military, institutionalized, or under 16 years old. There are 188 million who are employed and 12 million who are unemployed. What is the unemployment rate?
A. 4 percent B. 6 percent C. 9 percent D. 27 percent