Which of the Following Is an Application of the Hoteling

question 6

Multiple Choice

Which of the following is an application of the Hoteling model of monopolistic competition?

• A)Politicians tend toward positions more extreme than what they actually believe
• B)Stores of similar types tend to cluster
• C)Efficiency requires that stores are spread equidistant from each other in a given space
• D)As space increases between firms, each firm produces less

---

Definitions:

Bankruptcy Judges

Judges specialized in adjudicating bankruptcy cases, overseeing the legal process that involves the examination of debts and assets of individuals or businesses unable to pay their debts.

Federal District Courts

Courts of the first level in the federal judicial system of the United States, where civil and criminal cases under federal statutes are tried.

Liquidation

The process of converting a company's assets into cash to pay off creditors before closing the business.

Straight Bankruptcy

Also known as Chapter 7 bankruptcy, it involves the liquidation of a debtor's non-exempt assets to pay creditors.