The principle of minimum differentiation reflects the
A) tendency for firms to produce at minimum marginal cost in order to compete with one another.
B) tendency for political parties to make themselves identical to appeal to the median voter.
C) concept of minimizing the difference between total benefit and total cost to produce efficiently.
D) attempt to minimize the free-rider problem.
B
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Which of the following is NOT a characteristic of the demand curve faced by a firm in a monopolistically competitive market?
A) The demand curve is downward sloping. B) The slope of the demand curve is negative. C) The firm will produce where the demand curve is inelastic. D) The firm will produce where the demand curve is elastic.
One method unions use to ration available jobs among excess workers is
A) lengthy apprenticeships. B) to hire only white collar workers. C) collective bargaining. D) refuse to unionize.