Although monopolistically competitive markets offer consumers a wide variety of differentiated products, there may still be insufficient variety if
a. there are large fixed costs in the market.
b. there are no barriers to entry in the market.
c. the business-stealing externality is present in the market.
d. the government does not impose regulations on the market.
a
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"One should never bother with WLS. Using OLS with robust standard errors gives correct inference, at least asymptotically." True, false, or a bit of both? Explain carefully what the quote means and evaluate it critically
What will be an ideal response?
Which of the following statements is correct?
a. The theory of consumer choice provides a more complete understanding of supply, just as the theory of the competitive firm provides a more complete understanding of demand. b. The theory of consumer choice provides a more complete understanding of demand, just as the theory of the competitive firm provides a more complete understanding of supply. c. Monetary theory provides a more complete understanding of demand, just as the theory of the competitive firm provides a more complete understanding of supply. d. The theory of public choice provides a more complete understanding of supply, just as the theory of the competitive firm provides a more complete understanding of demand.