Which of the following examples reflects monopolistic competition?
a. Mihai subscribes to Link, Inc. because it’s the only cable company in his area.
b. Stefan buys a baseball made by Hit, Inc. because there are no good substitutes.
c. Elena finds that the supermarket stocks bananas produced by only one company.
d. Ana-Maria has difficulty choosing between ten brands of soap.
d. Ana-Maria has difficulty choosing between ten brands of soap.
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The forecasting method that involves using an average of past observations to predict the future (if the forecaster feels that the future is a reflection of some average of past results) is the
A) moving average method. B) econometric forecasting method. C) exponential smoothing method. D) Both A and B E) Both A and C
With respect to the market clearing price and the equilibrium quantity for good X, an increase in the demand for and a decrease in supply of the good definitely will
A) increase the market clearing price and the equilibrium quantity of good X. B) decrease the market clearing price and the equilibrium quantity of good X. C) increase the market clearing price of good X but lower the equilibrium quantity of X. D) increase the market clearing price of good X but have an uncertain impact on the equilibrium quantity of X.