A monopolistically competitive firm faces a downward-sloping demand curve because
A) of product differentiation.
B) its market decisions are affected by the decisions of its rivals.
C) it is able to control price and quantity demanded.
D) there are few substitutes for its product.
A
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A) savers, spenders B) spenders, investors C) borrowers, savers D) investors, savers
A perfectly competitive firm has a random demand with a 20 percent chance of being $10, a 20 percent chance of $16, and a 60 percent chance of being $20. What is the firm's expected marginal revenue?
A) $16.00 B) $16.40 C) $17.20 D) $15.20
Which of the following are justifications for running a budget deficit?
a. stabilizing the economy during a recession b. future generations will benefit from some current expenditures c. both a and b d. neither a nor b
A person who is employed in a service industry tends to have ______ wage rate as someone employed in manufacturing.
A. a higher B. about the same C. a lower