What are the characteristics of monopolistic competition?
Monopolistic competition is characterized by a large number of sellers selling a differentiated product. There are relatively weak barriers to entry and firms compete aggressively on a nonprice basis.
Economics
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The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, the efficient level of output
A) is achieved. B) can be achieved by giving paper producers a subsidy. C) can be achieved by imposing a Pigovian tax on paper producers. D) cannot be achieved.
Economics
In classical IS—LM analysis, the effects of a decline in desired investment include
A) a decline in output. B) an increase in the price level. C) a decline in the real interest rate. D) an increase in unemployment.
Economics