Compared with a firm in a perfectly competitive market, the demand curve faced by a monopolistically competitive firm is
A. perfectly elastic.
B. more elastic.
C. more inelastic.
D. perfectly inelastic.
Answer: C
You might also like to view...
Which one of the following reduces the likelihood that real-world fiscal policy will promote economic stability?
a. Policy planners do not know whether a tax cut is expansionary or restrictive. b. Policy makers need to know what economic conditions will be like 6 to 18 months into the future, and this is extremely difficult to forecast accurately. c. Policy planners are reluctant to implement expansionary fiscal policy even during a serious recession. d. Public choice theory suggests that elected political officials will generally favor restrictive fiscal policy.
The ________ is a commonly used measure of the degree of inequality in an income distribution.
A. utility possibility frontier B. Gini coefficient C. Herfindahl-Hirschman index D. Lorenz curve
Since 1960, Canadian labor force participation rate has ________ and the unemployment rate has ________.
A) trended higher; trended lower B) trended lower; varied over the business cycle C) trended higher; varied over the business cycle D) trended higher; trended higher E) varied over the business cycle; trended higher
Monopolies generally ________ technology and globalization.
A. lead to an increase in B. are unaffected by C. thrive with D. are reduced in number by