Because of product differentiation in a monopolistically competitive market, the demand curve for an individual firm will be
A) horizontal.
B) vertical.
C) downward sloping.
D) upward sloping.
C
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If European economies experience strong economic growth, U.S. net exports will
a. increase and AD will shift rightward. b. increase and AD will shift leftward. c. decrease and AD will shift leftward. d. decrease and AD will shift rightward.
Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. Which of the following would be considered a variable cost for this company?
A. Employee wages B. The cost of the factory C. The rope-cutting machine D. All of these expenses would be included in variable costs.
A 2009 Chevrolet model has more horsepower than the 2008 version and is included in the BLS basket of goods. BLS attempts to account for this change in the market basket by
a. dropping the good from the basket. b. substituting in a different vehicle with the same horsepower as the 2008 model. c. adjusting the share of the market basket allocated to transportation. d. adjusting the price of the good to account for the quality change.
Briefly explain the Heckscher-Olin (H-O) Theory.
What will be an ideal response?