Identify the correct statement
a. Firms under monopolistic competition face inelastic demand curves.
b. Firms under monopolistic competition produce and sell products that are complements.
c. Firms under monopolistic competition can enter or leave the market with ease in the long run.
d. Firms under monopolistic competition act interdependently.
c
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If a decrease in income leads to an increase in the demand for macaroni, then macaroni is
A) an inferior good. B) a necessity. C) a neutral good. D) a normal good.
Of the three motives for holding money suggested by Keynes, which did he believe to be the most sensitive to interest rates?
A) the transactions motive B) the precautionary motive C) the speculative motive D) the altruistic motive
The credit spread between government bonds and corporate bonds is ________
A) countercyclical and coincident B) procyclical and coincident C) procyclical and lagging D) countercyclical and leading E) acyclical
Which of the following is inversely related to consumption spending?
a. Wealth b. Interest rates c. Disposable income d. Optimism about future income e. None of the above.