Firms in monopolistic competition
A) face a downward-sloping demand curve.
B) cannot charge a markup because there are no dominant firms.
C) definitely do not benefit from advertising.
D) produce at the efficient scale in the long run.
E) generally have low to nonexistent selling costs.
A
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The difference between microeconomics and macroeconomics is that
A) microeconomics looks at supply and demand for goods, macroeconomics looks at supply and demand for services. B) microeconomics looks at prices, macroeconomics looks at inflation. C) microeconomics looks at individual consumers, macroeconomics looks at national totals. D) microeconomics looks at national issues, macroeconomics looks at global issues.
Which of the following prices could represent Sally's willingness to pay for a pair of shoes if she bought them for $45?
A. $15.00 B. $25.00 C. $44.99 D. $55.00
Compared to industrial market countries, developing countries usually have
a. exports consisting mostly of agricultural products and raw materials b. faster population growth c. higher unemployment d. higher rates of illiteracy e. All of the answers are correct
Economists use ____ economic analysis to understand an individual market. They then use ____ economic analysis to guide future national economic policy
a. b and d b. macro; micro c. positive; normative d. normative; positive