The demand curve faced by a monopolistically competitive firm is
A) horizontal.
B) vertical.
C) downward sloping.
D) upward sloping.
C
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If the market wage rate increases, a firm's labor demand curve does not shift but the labor supply curve shifts to the right
Indicate whether the statement is true or false
Which of the following is not an example of a fungible commodity?
A. Wheat B. Electricity C. Money D. All of these are fungible commodities.
Suppose that in a month the price of milk increases from $2 to $3 a gallon. At the same time, the quantity of gallons of milk demanded decreases from 200 to 190. The price elasticity of demand for milk (calculated using the initial value formula) is:
A. 0.1. B. 0.2. C. 1. D. 10.
Consider that Britain is trying to maintain a fixed exchange rate with respect to the U.S. dollar. However, the present situation in the foreign exchange market is conducive for the British pound to depreciate with respect to the U.S. dollar. If the British government uses sterilized intervention in the foreign exchange market, then
A. Britain will be running an overall payments surplus. B. the British monetary authorities will be selling British government bonds. C. Britain is gaining official international reserves. D. the British monetary authorities will be buying British government bonds.