In order to differentiate their product brands from those of competing firms, monopolistically competitive firms
A. advertise their product.
B. spread false rumors about their competitors.
C. take their competitor's reactions to changes in their policies into account.
D. equate marginal cost to marginal revenue to determine the profit maximizing quantity.
Answer: A
You might also like to view...
The Fed's two main monetary policy targets are
A) the interest rate and real GDP. B) the money supply and the interest rate. C) the money supply and the inflation rate. D) the inflation rate and real GDP.
Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000 . the firm's marginal cost equals $15 and its average total cost equals $11 . The firm sells its output for $12 per unit. To maximize its profit, the firm should
a. increase its output. b. continue to produce 1,000 units. c. decrease its output, but continue to produce. d. shut down.
A curve that shows all of the alternative consumption bundles that the consumer likes equally well is called:
A. a budget constraint. B. an indifference curve. C. an individual demand curve. D. a consumption bundle curve.
Margaret can use her quarterly savings to buy a teakwood study table for her room or spend it on a small Christmas party with her family. The _____ cost of her enjoyment at the Christmas party would then equal the forgone utility of the study table
a. transaction b. exchange c. opportunity d. direct e. sunk