Answer the following questions true (T) or false (F)
1. Consumers in monopolistically competitive markets face a trade-off between paying prices greater than marginal costs and purchasing products that are more closely suited to their tastes.
2. One way by which firms differentiate their products is to try to anticipate changes in consumer tastes and adapt their products to fit those changed tastes.
3. In the long-run equilibrium, a monopolistically competitive firm earning normal profit produces the allocatively efficient output level.
1. TRUE
2. TRUE
3. FALSE
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A French tourist spent $1,200 in the U.S this year. This transaction will lead to a(n) ________
A) decrease in the GDP of U.S. B) increase in the GDP of France C) decrease in the GDP of France D) increase in the GDP of U.S.
The profit motive counteracts
a. consumer discrimination. b. discrimination in sports. c. the beauty premium. d. None of the above is correct.
Transfer payments are
What will be an ideal response?
Refer to the above graph. The aggregate demand curve would be represented by which line?
A. 1 B. 2 C. 3 D. 4