Firms in a monopolistically competitive industry produce:
a. homogeneous goods and services.
b. differentiated products.
c. competitive goods only.
d. consumption goods only.
b
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The figure illustrates the demand for magazines. Newsagents will maximize their total revenue when they ________
A) sell 375 magazines a day B) sell as many magazines as they can C) charge $2.50 a magazine D) sell 750 magazines a day
Why did the monetary base increase rapidly during the economic crisis of 2008?
a. The Fed sold financial assets and extended fewer loans. b. The Fed increased both its purchase of assets and quantity of loans extended. c. The Fed increased its purchases of assets, but offset this with an increase in the reserve requirement. d. The Fed sold financial assets, but offset this with a reduction in the reserve requirement.
An increase in demand will cause
What will be an ideal response?
Economist John Kenneth Galbraith has argued that most prices in the United States' mixed economy are set by
A. a government planning committee. B. the invisible hand. C. the nation's largest corporations. D. consumers voting with their dollars.