Product differentiation is what allows monopolistically competitive firms to have some market power.
Indicate whether the statement is true or false.
Answer: True.
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Assuming price elasticity of demand is reported as an absolute value, a price elasticity of demand less than one indicates demand for the good is:
A. elastic. B. inelastic. C. unitary elastic. D. unrelated to price.
A firm whose production function displays increasing returns to scale will have a total cost curve that is
a. a straight line through the origin. b. a curve with a positive and continually decreasing slope. c. a curve with a positive and continually increasing slope. d. a curve with a negative and continually decreasing slope.
Economists use the notation Q = f(L,K) to describe:
a) the financial relationship between the inputs that a firm uses and the outputs that it produces. b) the level of output (Q) required to fully employ labour (L) and capital (K). c) the flow of labour (L) and capital (K) services that are available when output is (Q). d) the arithmetic relationship between the outputs that a firm uses and the inputs that it produces. e) the technological relationship between the inputs that a firm uses and the outputs that it produces.
As long as the interest is greater than zero, the future value of any balance is
A. either larger or smaller than the balance itself, depending upon the size of the positive interest rate. B. greater than the value itself. C. smaller than the value itself. D. equal to the value itself.