What are the implications of there being a large number of firms in a monopolistically competitive market?
What will be an ideal response?
A large number of firms has three implications. (1 ) Each firm will have a small share of the market since there are many firms. (2 ) There will be a lack of collusion among the firms because the large number will make it impossible for the firms to agree on price and output decisions. (3 ) Each firm will act independently from their competitors since they cannot take into account how their numerous competitors will react to changes in their behavior.
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An estimator is
A) an estimate. B) a formula that gives an efficient guess of the true population value. C) a random variable. D) a nonrandom number.
Other things constant, if domestic consumers purchase fewer foreign goods at each level of GDP in the short run:
A. GDP will rise B. GDP will fall C. Foreign countries' GDP will rise D. There will be no change in GDP in this country