What happens to a monopolistically competitive firm that begins to charge an excessive price for its product?
a. The firm will go out of business.
b. Consumers will substitute a rival's product.
c. Consumers will boycott the product.
d. The government will regulate the price.
Answer: Consumers will substitute a rival's product.
Economics
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From Elizabeth I to George III, England strongly influenced the institutional structure of colonial America. This influence is realized today on which of the following fronts?
(a) Private property rights (b) The role of international trade and finance in the U.S. economy (c) Population growth through immigration (d) All of the above
Economics
"Oligopoly is the only market structure in which rivalry among firms takes place." Do you agree or disagree? Why?
What will be an ideal response?
Economics