Significant barriers to entry exist in a monopolistically competitive industry.
Answer the following statement true (T) or false (F)
False
In a monopolistically competitive industry, ease of entry ensures zero economic profits in the long run.
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Your friend owns a snow cone stand that he works by himself. He produces about 25 snow cones per hour. He wants to be able to produce twice as many snow cones per hour so he buys a second machine
He notices that he can only produce 10 more snow cones an hour. He jokes that he could have doubled his output with the second machine if he only had four hands. Using your knowledge of the production process, explain to your friend what you think has happened when he added more capital to his production process.
The market basket that is used by the Bureau of Labor Statistics to calculate prices is made up of which of the following?
(A) Food items only. (B) Typical goods and services for an urban household. (C) Nonfood items only. (D) Food and necessary services for any family.