Econ Test 2

The total cost of production is determined by adding which of the following costs?

Labor, capital and land, intermediate inputs, and accumulating business know-how.

_________ is the added cost to produce one more unit of output.

Marginal cost

In the long run, monopolistic competition starts to look like

Perfect competition.

In perfect competition, all businesses in a market produce at the point where ________ equals __________.

market price; marginal cost

A good example of monopolistic competition is

neighborhood restaurants

Perfect competition requires a nonstandard product.

False

Monopolistic competition is characterized by

a large number of sellers with a similar product.