In monopolistic competition, a firm can set the price for its product because of
A) easy entry and exit.
B) economic profits.
C) product differentiation.
D) many competitors.
E) the firm's upward sloping demand curve.
C
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Refer to Table 4-12. The equations above describe the demand and supply for Bubba's Fried Jellybeans. The equilibrium price and quantity for Bubba's Fried Jellybeans are $40 and 5 thousand units. What is the value of consumer surplus?
A) $5 thousand B) $12.5 thousand C) $25 thousand D) $37.5 thousand
You win the $20 million state lottery, and you have a choice of taking an amount of money per year for the next 20 years or a flat payment now. The flat payment that the state offers you is $9.82 million
a. What discount rate is the state using? b. Should you take the money or the annuity?
When a firm is a price maker
A) price is equal to marginal revenue. B) price is greater than marginal revenue. C) price is less than marginal revenue. D) price is equal to marginal cost.
What is the distinction between innovation and invention?
What will be an ideal response?