Firms in a monopolistically competitive market will advertise because
A) they want to differentiate their products.
B) they want to increase the elasticity of the demand curve.
C) of the significant differences in their product over their competitors.
D) the elasticity for their product is inelastic.
A
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Internal production and market purchases are alternative ways of organizing transactions
Indicate whether the statement is true or false
If Real GDP is greater than Natural Real GDP, the economy is in a(n)
A) frictional gap. B) structural gap. C) recessionary gap. D) inflationary gap.
A demand function is inelastic if the absolute value of its elasticity is less than one.
a. true b. false
The real rate of interest is
A) equal to the nominal rate of interest less the anticipated rate of inflation. B) equal to the nominal rate of interest plus the anticipated rate of inflation. C) found by taking the nominal rate of interest and dividing it by the actual rate of inflation. D) found by taking the nominal rate of interest and adding the actual rate of inflation.