A monopolistically competitive firm faces a downward-sloping demand curve.
Answer the following statement true (T) or false (F)
True
This is the case because monopolistically competitive firms are able to differentiate their products, giving them limited monopoly power.
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Which of the following would NOT reduce the natural rate of unemployment?
A) a tax cut B) an increase in government expenditures C) wage or price controls D) all of the above
The primary objective of a for-profit firm is to ___________
a. maximize agency costs b. minimize average cost c. maximize total revenue d. set output where total revenue equals total cost e. maximize shareholder value
Which of the following statements is true about profit-related income? a. It results from hiring workers below the marginal contributions they make to the enterprise
b. It consists of rents derived from the sole ownership of capital. c. It is the reward for undertaking the uncertainties of enterpreneurship. d. It equals the entrepreneur's opportunity costs of labor and money capital. e. It is the same as wage-related rents, except it is the entrepreneur who gets it.
Which of the following is a major reason for offshoring?
a. The gradual reduction in information and communication technologies. b. The fragmentation of production processes. c. The gradual decline in worldwide competition. d. All of the above are major reasons for offshoring.