Which of the following is true about monopolistic competition?
A) One firm serves as the entire industry.
B) A small number of firms serve the entire market.
C) It is competition among many firms producing similar but differentiated products.
D) Firms do not have economies of scale.
C
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A firm will continue to purchase and use land until the:
A) value of marginal product of land equals the price of land. B) value of average product of land equals the marginal product of land. C) value of marginal product of land equals the marginal product of labor. D) value of marginal product of land equals the marginal product of capital.
The longer the time period that suppliers have to adjust to price changes, the
A) greater will be the price elasticity of supply. B) lower will be the price elasticity of supply. C) lower will be the price elasticity of demand. D) greater will be the price elasticity of demand.