The price elasticity of a monopolistically competitive firm's demand curve varies
A. directly with the number of competitors and the degree of product differentiation.
B. directly with the number of competitors but inversely with the degree of product differentiation.
C. inversely with the number of competitors and the degree of product differentiation.
D. inversely with the number of competitors but directly with the degree of product differentiation.
Answer: B
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Regulating the amount of money in the United States is one of the most important responsibilities of the
A) State Department. B) state governments. C) Treasury Department. D) Federal Reserve. E) U.S. Mint.
Since sunk costs are incurred no matter what:
A. they are relevant in deciding how much to produce. B. they are essential in the profit-maximizing sales quantity formula. C. they can generally be ignored in making economic decisions. D. they are considered fixed costs.
All but which one of the following could be expected to result from rent controls?
a. an increase in housing b. substandard housing c. waiting lists for housing d. a decline in apartment construction e. black market in housing
When aggregate expenditure is greater than GDP, then there will be an:
A. Unplanned increase in inventories and GDP will increase B. Unplanned decrease in inventories and GDP will increase C. Unplanned increase in inventories and GDP will decrease D. Unplanned decrease in inventories and GDP will decrease