The demand curve for the product of a monopolistic competitor is
A. vertical.
B. downward sloping.
C. unitary elastic.
D. horizontal.
Answer: B
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In the above figure, the firm will produce
A) 0 units. B) 5 units. C) 15 units. D) 20 units.
Suppose Thelma and Louise both sell fried green tomatoes in a perfectly competitive market. If Louise increases her output,
a. Thelma must reduce output b. the price Thelma can charge falls c. the price Thelma can charge rises d. the price Thelma can charge is unaffected e. Thelma's profits must fall
Suppose prices for new homes have risen, yet sales of new homes have also risen. We can conclude that:
a. the demand for new homes has risen. b. the law of demand has been violated. c. new firms have entered the construction industry. d. construction firms must be facing higher costs.
Because of increasing opportunity costs, the production possibility curve:
A. Is bowed out from (or concave to) the origin B. Can be either downward- or upward-sloping C. At first rises, then falls eventually D. Is a straight downward-sloping line