The demand curve facing a monopolistically competitive firm is generally
a. steeper than the demand curve that would face a perfectly competitive firm in the same industry.
b. less elastic than the demand curve that would face a monopoly in the same industry.
c. steeper and more elastic than the demand curve that would face a perfectly competitive firm in the same industry.
d. flatter than the demand curve that would face a monopoly in the same industry.
d
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The law of diminishing marginal product holds so long as the input is not a Giffen good.
Answer the following statement true (T) or false (F)
Toddler Treats produces soft cereal bars for toddlers and Toddler Treats states on its packaging and in its advertising that its cereal bars are nut-free. All of the following could be accidents for Toddler Treats except which one?
A) an audit failure B) selling cereal bars that have been cross-contaminated with peanuts C) failing to earn economic profit D) infringing on other company's patent on toddler cereal bars
Pigovian taxes are used to counterbalance:
A. negative externalities. B. positive externalities. C. network externalities. D. They could be used to counteract any of these.
New classical economists contend that an unexpected increase in the money supply will:
a. increase the unemployment rate in the short run. b. reduce the unemployment rate in the short run. c. cause no short-run change in the unemployment rate. d. reduce the unemployment rate in the long run. e. increase the unemployment rate in the long run.