Monopolistic competition is different from perfect competition in that every manufacturer
A. has a small monopoly, and differentiates the product.
B. takes the product quality as given, and chooses price.
C. takes output level as given, but must choose price.
D. differentiates product, but cannot advertise successfully.
Answer: A
Economics
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Assume the market price is greater than average total cost at the perfectly competitive firm's profit-maximizing level of output
In this case, the firm is earning positive economic profits, which act as an incentive for new firms to enter the market. Indicate whether the statement is true or false
Economics
The things that must be forgone to acquire a good are called
a. implicit costs. b. opportunity costs. c. explicit costs. d. accounting costs.
Economics