The key characteristics of a monopolistically competitive market structure include
A) few sellers.
B) sellers selling similar but differentiated products.
C) high barriers to entry.
D) sellers acting to maximize revenue.
Answer: B
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Imbalances in information can cause problems between:
A. buyers and sellers. B. lenders and borrowers. C. employers and employees. D. All of these statements are true.
Say a public good is provided to two consumers: John and Jill. John's willingness to pay for the good is P = 10 - Q, and Jill's is P = 20 - 2Q. The marginal cost to provide the good are 2Q. Assume the government must pay for providing this good by taxing Jill and John equally to raise the necessary revenue. If the total costs of providing the public good are $25, then
A. both Jill and John would be willing to vote to approve of providing the good. B. only John would be willing to vote to approve of providing the good. C. only Jill would be willing to vote to approve of providing the good. D. neither Jill nor John would be willing to vote to approve of providing the good.