The monopolistically competitive firm differs from monopoly in that its
a. demand curve is flatter.
b. demand curve slopes downward.
c. MR curve lies below its demand curve.
d. profit is maximized where MR = MC.
a
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Figure 4.3 illustrates the demand for tacos. A decrease in the demand for tacos is represented by the movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D1.
A decrease in the foreign interest rate causes the demand for domestic assets to ________ and the domestic currency to ________, everything else held constant
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
Suppose that Ed's Fine Bottled Water supplies 35,000 quarts of bottled water each month when the price per quart is $0.80 . When the price of a quart increases to $1.20, supply is increased to 45,000 quarts each month. Calculate the absolute value of Ed's price elasticity of supply of water?
a. 0 b. 0.63 c. 1 d. 1.6
If the economy is self-regulating and in a recessionary gap,
A) wages and prices will fall. B) wages will fall, but prices will rise. C) neither wages nor prices will change. D) wages will rise, but prices will fall. E) wages and prices will rise.