A monopolistically competitive firm faces a downward-sloping demand curve because there are few firms in the market
a. True
b. False
Indicate whether the statement is true or false
False
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Explain whether a firm’s decisions are optimal if economic profit is (a) positive, (b) zero, or (c) negative.
What will be an ideal response?
If the total cost of producing 300 leather jackets is $400 and the total cost of producing 301 leather jackets is $435, what is the marginal cost of production at 300 leather jackets?
(A) $835 (B) $435 (C) $35 (D) $400
Which group in the United States tends to spend the largest amount of money per person on health care?
A. Young and middle-aged people from 19 to 64 B. Elderly people from 65 and up C. Children and teens from infancy to 18 D. All groups spend about the same amount of money per person.
One key assumption of the classical model is
A. wages are sticky. B. government spending plays a major role. C. prices are sticky. D. money illusion cannot fool workers.