Which of the following assumptions is TRUE about monopolistic competition?
A) The firm's products are differentiated.
B) There are few producers of the product.
C) Firms will not advertise.
D) It is difficult for firms to enter this industry.
A
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When the market price rises, the consumers' consumer surplus ________. When the market price falls, the consumers' consumer surplus ________
A) decreases; increases B) decreases; decreases C) increases; increases D) increases; decreases E) does not change; increases
There are two goods in the economy, apples and bread. The relative price of apples has increased. This could be due to
A) an increase in the absolute price of apples, ceteris paribus. B) a decrease in the absolute price of bread, ceteris paribus. C) a decrease in the absolute price of apples, ceteris paribus. D) an increase in the absolute price of bread, ceteris paribus. E) a and b
Which of the following groups has an interest in encouraging free trade?
A. Neither workers nor producers in any industry are in favor of trade. B. Workers in import-competing industries. C. Producers in import-competing industries. D. Workers in export industries.
Refer to the information provided in Figure 34.3 below to answer the question(s) that follow.
Figure 34.3Refer to Figure 34.3. If fewer British firms want to invest in the United States, the supply of pounds will
A. shift from S1 to S0. B. shift from S2 to S0. C. shift from S1 to S2. D. not change.