In comparing monopolistic competition to perfect competition, one can conclude that the lack of free entry is the key to having the ability to set price
Indicate whether the statement is true or false
False. Free entry is the key to driving long-run profit to zero. The key to price-setting ability is the downward-sloping demand curve. This can, in general, result from having few firms, but is due to product differentiation when considering monopolistic competition..
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Suppose Country A relies on exports of two primary products, sugar cane and rubber.a. According to the predictions of Engel's law, what will happen to the terms of trade of Country A in the long run?b If you are to provide economic policy advice to this nation's government, what advice would you give? In your answer, be sure to explain the reasons behind your advice.
What will be an ideal response?
A headline reads: "Steel industry suffers slump as import competition increases; unemployment rises." This type of unemployment can best be characterized in economic terms as:
A. frictional. B. cyclical. C. natural. D. structural.