A major distinction between a monopolistic ally competitive firm and an monopolistic firm is that:
A. One is a price taker and the other is a price maker
B. A recognized interdependence exists between firms in one industry but not in the other
C. One always produces differentiated products and the other always produces a homogeneous product
D. One necessarily faces a downward-sloping demand curve and the other a horizontal demand curve
B. A recognized interdependence exists between firms in one industry but not in the other
You might also like to view...
Contrary to behavior that would be required to eliminate output gaps, many firms in the economy:
A. intentionally set prices below equilibrium prices in order to create shortages. B. adjust their prices only periodically. C. only change the amount of output they produce in the long run, not in the short run. D. have fully-flexible prices that change constantly.
Refer to the information provided in Figure 5.7 below to answer the question(s) that follow.
Figure 5.7The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve.Refer to Figure 5.7. After the tax, store owners are willing to sell ________ pumpkins at a price of ________ each.
A. 0; $8.50 B. 1,200; $5.50 C. 1,200; $7.25 D. 700; $7.25