In monopolistic competition, excess capacity results from
A) the presence of a large number of buyers.
B) the mobility of firms into and out of the industry.
C) imperfect information about price.
D) product differentiation.
D
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Because resources are scarce, if society produces more of one commodity, it has to sacrifice some amount of another commodity. The amount sacrificed is
a. a normative problem b. the out-of-pocket cost c. the opportunity cost d. the lost profit e. the total factor productivity
Suppose the price level is rising and it is widely forecast to rise even further. This forecast might cause __________ of some consumption plans, resulting in __________ the AD curve
A) postponement; a rightward shift of B) postponement; a leftward shift of C) acceleration; a rightward shift of D) acceleration; movement down along