Which of the following would NOT cause the costs in a monopolistically competitive industry to be higher than those in a perfectly competitive industry?
A. A large number of competitors
B. Advertising expenditures
C. Marketing costs necessary to differentiate a product
D. The ability to control the price of the product so costs can be allowed to rise
A. A large number of competitors
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A university's basketball gymnasium is never more than half-full during basketball games. This implies a. the ticket price is above the equilibrium price. b. the ticket price is below the equilibrium price. c. the ticket price is at the equilibrium price
d. nothing about the equilibrium price.
An economist from which of the following schools of thought would most likely say - "An increase in government expenditure will only increase inflation, because the aggregate supply curve is vertical"?
a. Neoclassical economics b. Traditional classical economics c. New Keynesian economics d. Keynesian economics e. Marxist economics