The products sold by monopolistically competitive firms
A) are differentiated.
B) are homogeneous.
C) can be either homogeneous or differentiated.
D) have no close substitutes.
Answer: A
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For American buyers, there is a decrease in the relative prices of Japanese goods when the ________.
A. inflation rate in Japan is higher than the inflation rate in the United States and there are fixed exchange rates B. inflation rate in the United States is higher than the inflation rate in Japan, and there are flexible exchange rates C. yen appreciates D. dollar appreciates
Your friend is preparing for this exam and in your practice session makes the following statement: "Instead of attending microeconomics class for two hours, Kiki could have played tennis or watched a movie
Therefore, the opportunity cost of attending class is the tennis and the movie she had to give u
In a world of perfect certainty, sharecropping would be less efficient than a farm owner working his own farm because
(a) sharecroppers receive only half of their marginal product. (b) paying a worker a wage gives him or her an incentive to shirk. (c) sharecroppers are exploited by landlords. (d) renting farmland concentrates risk on the renters. (e) all of the above.
Profit can be maximized only where marginal revenue equals
A. average cost. B. total cost. C. marginal cost. D. average cost.