Category: Monopoly & Competition

A. all of these answers
B. are useful even in socialist economics such as the former Soviet Union
C. provide information about the quality of the product
give firms incentive to maintain high quality

A. a manual fracture of breakfast cereal
B. a wholesaler of crude oil
C. a restaurant
D. a manufacturer of home heating and air conditioning

A. free entry and exit
B. long run economic profits
C. many sellers
D. differentiated products

A. losses and firms exit the market
B. profits and firms exit the market
C. losses and firms enter the market
D. profits and firms enter the market

A. Advertising increases competition
B. Advertising provides information to customers about prices, new products and location of retail outlets.
C. Advertising provides a creative outlet for artists and writers
D. Advertising provides new firms with the means to attract customers from existing firms.