Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right. At the extreme right end, all 100 voters lie to the left. 
If Candidate X is running against Candidate Z, by moving to the right Candidate X would:
A. force Z to move farther to the right in order to keep the same number of votes.
B. not lose any votes from voters on the left and gain some votes from Z.
C. lose some votes from voters on the far left but gain approximately the same number of votes from Z.
D. win the election if the move placed X anywhere to the right of 25 on the spectrum.
Answer: B
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a. 90 b. 40 c. 20 d. 180
Over the range of diminishing marginal product, if the variable input to a firm is increased: a. output will increase more than in proportion to the increase in the input
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A. horizontal. B. upward-sloping. C. downward-sloping. D. vertical.
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