In a market of monopolistic competition, there will be
a. a kink in the demand curves for the output of the individual sellers.
b. product differentiation.
c. a substantial substitution effect whenever any one firm changes its price.
d. All of these.
b. product differentiation.
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What will be an ideal response?
Why are economic growth and saving related?
What will be an ideal response?
If it is employing the rule of reason when considering an antitrust case, the court
a. considers why the offending practice was adopted and its effect on competition b. does not consider why the offending practice was adopted or its effect on competition c. ignores the economic rationale for the offending practice and its consequences d. needs only determine that the offending practice took place e. considers only whether the firm has market power, not whether it used that power unreasonably
If a market is narrowly defined, the market share of each firm declines than if it is broadly defined
a. True b. False Indicate whether the statement is true or false