The Movie You've Got Mail Features a Successful Small Bookstore

question 105

Multiple Choice

The movie You've Got Mail features a successful small bookstore competing with a new book superstore around the block.The big superstore offers deep discounts,while the small independent bookstore has better service and more knowledgeable staff.The movie best illustrates which of the following?

• A) For monopolistically competitive firms, profits will be positive in the long run.
• B) Homogeneous products are produced by both firms because consumers perceive books from either store as the same.
• C) Product differentiation occurs because consumers perceive the bookstores as different.
• D) Monopoly production occurs because the movie is copyrighted.
• E) Perfect competition occurs because many movie theaters are showing identical movies.