Monopolistic competition is defined as a type of market structure where
A) many firms produce the good.
B) firms produce a homogeneous good.
C) there are barriers to entry.
D) firms can earn positive profit in the long run.
A
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Jill is the best eye surgeon in town, and she earns $350,000 a year. Susan is an average eye surgeon in town, and she earns $100,000 a year. Jill's skills as a surgeon
a. are valued more by the market relative to Susan's and that explains why her income is higher than Susan's. b. are valued less by the market relative to Susan's and that explains why her income is higher than Susan's. c. are valued less by the market relative to Susan's and that explains why her income is lower than Susan's. d. are more expensive because she receives a compensating differential.
If we hold ideas, education, and labor constant, then output (GDP) is a function of
A) human capital. B) physical capital. C) the skill of labor. D) research capital.