A monopolistically competitive firm derives its ability to influence price from:
a. the perfectly elastic demand curve it faces
b. barriers to entry.
c. its product, which is differentiated in some way from competing products.
d. its position as the sole supplier in the market.
c
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Suppose the government increases its expenditures by $100 million and finances the resulting deficit by selling bonds. Then the LM curve will
A) shift rightward. B) shift leftward. C) become steeper. D) None of these.
In the above figure, along which range would total revenue remain unchanged by raising prices?
A) between point a and point b B) between point c and point d C) between point d and point e D) below point e and above point a.
Investment, as a part of GDP, includes:
A. stocks. B. bonds. C. gold. D. factories.
The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in
a. performing an experiment in an economic system. b. applying mathematical methods to economic analysis. c. analyzing available data. d. formulating theories about economic events.