Monopolistically competitive firms have an incentive to:
A. create products that are easily substituted for the competition's products.
B. create products that have a unique feature that makes it difficult to substitute.
C. create products that are exactly like the competitor's products.
D. None of these statements is true.
B. create products that have a unique feature that makes it difficult to substitute.
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A monopolistically competitive firm can raise its price somewhat without fear of great change in unit sales because of
A. Brand loyalty. B. Economies of scale. C. Large market shares of firms in the market. D. Inelastic demand.
An increase in labor productivity will shift
A. MRP curve to the left. B. MFC curve to the right. C. MFC curve to the left. D. MRP curve to the right.
An increase in production possibilities is known as
A. Economic growth. B. Factor expansion. C. Upward mobility. D. Predictable growth.
Recall the Application about the supply of shipping services to answer the following question(s).According to the Application, at a relatively low freight rate, only the ________ efficient ships operate, and they save on cost by traveling at a ________ speed.
A. most; fast B. most; slow C. least; fast D. least; slow