Which of the following examples reflects monopolistic competition?
a. Pineapple agriculture has just enough farms to meet society’s needs efficiently.
b. The ski resort business has too many resorts to meet society’s needs efficiently.
c. Tea agriculture does not have enough farms to meet society’s needs efficiently.
d. The tourism industry fluctuates between too many and too few tours to meet society’s needs efficiently.
b. The ski resort business has too many resorts to meet society’s needs efficiently.
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The above table gives the demand and supply schedules for Blu-ray discs. Suppose that the price of a Blu-ray disc player increases, resulting in the demand for Blu-ray discs decreasing by 8,000 units at all prices
What are the new equilibrium quantity and equilibrium price of Blu-ray discs? A) 8,000 and $8 B) 16,000 and $16 C) 20,000 and $20 D) 28,000 and $28
A possible advantage of a horizontal merger for the economy is that
A) the government stands to collect more corporate income tax revenue. B) the merged firm might reap economies of scale which could translate into lower prices. C) the merging firms could avoid losses. D) the degree of competition in the industry will be intensified.