A monopolistically competitive market is marked by the barriers to entry of new firms in the long run.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2If you have a choice of consuming either two apples, three oranges, or one candy bar, the opportunity cost of the candy bar is:
a. two apples.
b. three oranges.
c. two apples and three oranges.
d. two apples or three oranges, whichever you value more.
e. the difference in the prices of the three options.
QUESTION 3A monopolistically competitive firm faces a relatively less elastic demand curve than a monopolist.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4Jane wins 100,000 in a lottery and immediately uses her winnings to open up a donuts shop. Her direct cost is 50,000 . and she puts the remaining money in a savings account earning 10 percent annual interest. Alternatively, Jane could have placed all her lottery winnings in the 10 percent savings account. Jane's total cost of opening up a donuts shop is:
a. 60,000.
b. 50,000.
c. 160,000.
d. 45,000.
e. 55,000.
QUESTION 5The market structure in which the largest quantity of output is sold at the minimum possible price is:
a. monopoly.
b. perfect competition.
c. oligopoly.
d. monopolistic competition.
e. monopsony.
QUESTION 6In economics, the concept of opportunity cost is:
a. negated by ensuring that the government has a role in a capitalist society.
b. defined to be the highest-valued alternative that must be forgone when a choice is made.
c. best illustrated by knowing why consumers choose one good over another.
d. quantifiable only if you know the real dollar price of the goods and services you are giving up to consume something.
e. the methodology that government economists use to determine the total amount of the national debt.
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