Which of the following most closely approximates the conditions of a monopolistically competitive market?
A. The market for Grade A eggs, which is characterized by a large number of firms producing a homogeneous product.
B. The restaurant industry, which is characterized by firms producing a differentiated product in a market with low entry barriers.
C. Local cable television service, where a licensed supplier competes with firms offering satellite service.
D. The market for jumbo aircraft, where one major domestic firm competes with one major foreign firm.
Answer: B
You might also like to view...
When comparing the autonomous expenditure multiplier in a closed-economy model to the autonomous expenditure multiplier in an open-economy model it can be concluded that
a. the multiplier in the open-economy model will be larger than in the closed-economy model. b. the multiplier in the open-economy model will be smaller than in the closed-economy model. c. both multipliers are the same. d. None of the above.
The intersection of the x axis and the y axis is called the
A. "zero" point. B. "meeting point." C. origin. D. corresponding point.