Price reductions are often used as an effective way to increase sales in monopolistic competition.
Answer the following statement true (T) or false (F)
False
Because each monopolistically competitive firm has its own captive market- consumers who prefer its particular brand over competing brands-lower prices will not be effective at inducing consumers to switch brands. Instead, imperfectly competitive firms engage in nonprice competition.
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A certain production process requires only two types of inputs — capital and labor. In 2006, 100 units of labor and 50 units of capital were employed, and 100 units of output were produced. In 2013, 112 units of labor and 56 units of capital were employed. If the production process displays constant returns to scale, then how many units of output were produced in 2013?
a. 100 b. 112 c. 124 d. 144
Refer to the graph shown. The shift in the supply curve from S1 to S2 could not be the result of:
A. expansionary monetary policy. B. an increase in the U.S. inflation rate. C. a decrease in U.S. interest rates. D. contractionary monetary policy.
A person who can produce more of a good than another person is said to possess a comparative advantage
a. True b. False
The theory underlying demand and supply curves assumes that, all other things unchanged, the primary variable that assures the equality of the quantities demanded and supplied is:
A) consumer income. B) the preferences of consumers. C) the expectations of consumers and producers. D) price.