Explain what should happen to the demand curve of monopolistically competitive firms as consumers increasingly perceive their products to be more like commodities. What industrial structure does this lead to?
What will be an ideal response?
The demand curves of each monopolistically competitive firm will become more elastic with time and will eventually become perfectly elastic as consumers come to regard the products they produce as homogeneous. This of course leads to a perfectly competitive industry at least in theory.
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If the income per capita of United Kingdom is £23,800 and dollar/pound exchange rate (US$/£) is 1.68 in 2014, the income per capita of UK in US dollars in the same year is ________
A) $30,400 B) $22,829 C) $12,812 D) $39,984
Because of the owner's prejudice, a firm chooses to discriminate against hiring Asian workers. Compared to an otherwise identical, nondiscriminating firm in the same competitive market, the discriminating firm will: a. incur higher costs
b. receive lower profits. c. receive higher profits. d. be characterized by both (a) and (b).
Suppose ice cream cones costs $3 . Molly holds $60 . What is the real value of the money she holds?
a. $60 . If the price of ice cream cones rises, to maintain the real value of her money holdings she need to hold more dollars. b. $60 . If the price of ice cream cones rises, to maintain the real value of her money holdings she need to hold fewer dollars. c. 20 ice cream cones. If the price of ice cream cones rises, to maintain the real value of her money holdings she needs to hold more dollars. d. 20 ice cream cones. If the price of ice cream cones rises, to maintain the real value of her money holdings she needs to hold fewer dollars.
What percentage of the M2 measure of money is currency?
A. five. B. ten. C. fifteen. D. twenty.