In monopolistic competition
A) each firm's price cannot deviate from the average price of other firms.
B) each firm supplies a small part of the total market output.
C) one firm's actions directly affect the actions of the other firms.
D) collusion is possible.
B
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When Economist Truman Bewley surveyed managers about their employment decisions during a recession, he found that:
A. they are indifferent between using layoffs and using wage cuts during a recession. B. they feel guiltier about reducing workers' wages than they do about firing workers. C. it is easier to reduce wages slightly for all workers than to fire some workers. D. it is easier to fire some workers and leave the wages of the other workers unchanged.
Refer to the information provided in Figure 13.3 below to answer the question(s) that follow. 
Figure 13.3Refer to Figure 13.3. This firm's marginal revenue will be positive at
A. $14. B. prices between $8 and $12. C. $6. D. all prices.
A market where there is only one buyer for a good or service is called a monopoly.
Answer the following statement true (T) or false (F)
According to the Heckscher-Ohlin theory, comparative advantage is based on:
a. labor productivity differences. b. product life cycles. c. the availability of skilled resources. d. consumer tastes and preferences. e. the relative abundance of the factors of production.