Which statement is true regarding the difference between the demand curves for a monopolistic competitor and a monopolist?
a. A monopolistic competitor’s perceived demand curve is protected by barriers to entry.
b. A monopolistic competitor's perceived demand curve is based on product differentiation and number of competitors.
c. A monopolist’s perceived demand curve is based on product differentiation and number of competitors.
d. A monopolistic competitor's perceived demand curve is the market demand curve.
b. A monopolistic competitor's perceived demand curve is based on product differentiation and number of competitors.
Although both a monopolist and a monopolistic competitor face downward-sloping demand curves, the monopolist’s perceived demand curve is the market demand curve, while the perceived demand curve for a monopolistic competitor is based on the extent of its product differentiation and how many competitors it faces.
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Based on the Saving-Investment Diagram, if the difference between values G and E measures the net capital outflow, then ________
A) the difference between values G and E measures the trade surplus B) the difference between values H and D measures the trade surplus C) the domestic real interest rate is indicated by B D) desired saving has decreased E) none of the above
What is the effect of supply-side inflation on the short-run Phillips curve?
The following list contains factors that are related to the aggregate demand curve.1)Household expectations 2)Profit expectations 3)Degree of excess capacity 4)Personal income tax rates 5)Exchange rates 6)National income abroad 7)Government spending 8)Household wealth Refer to the above information. Investment spending would most likely be influenced by changes in:
A. 2 and 3. B. 1 and 8. C. 5 and 6. D. 1 and 4.
Which of the following is correct?
a. In the national income accounts, investment and private saving refer to the same thing. b. In a closed economy if national saving is greater than zero, then everyone must be saving. c. The financial system channels funds from savers to borrowers. d. People whose consumption exceeds their income are savers.