Monopolistically competitive firms do not differentiate their products by:
A. changing the products' physical characteristics.
B. selling products at different locations.
C. offering different levels of service that come with a product.
D. charging different prices to different groups of consumers.
Answer: D
You might also like to view...
Real income will rise from one year to the next if nominal income
A. rises and the price level rises faster. B. falls and the price level falls faster. C. falls faster than the price level. D. falls and the price level rises.
Refer to Figure 35.6: If S1 represents the U.S. domestic supply of a good, what does S2 most likely represent?
A. Production possibilities under conditions of free trade. B. U.S. supply under tariff-restricted trade. C. The result of a foreign country dumping this good on the U.S. market. D. U.S. supply under quota-restricted trade.
Answer the following statement(s) true (T) or false (F)
1. Present-day fluctuations in exchange rates are determined solely by market forces. 2. When exchange rates change, they affect not only the currency market but the product markets as well. 3. Since the advent of flexible exchange rates, world trade has expanded. 4. The most important advantage of the Bretton Woods fixed-rate system is that it has reduced the speculative rampages that were common under a flexible-rate system. 5. Booming futures markets in foreign currencies opened in Chicago, New York, and in foreign financial centers during the years that the world used the Bretton Woods system.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs. B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs. C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs. D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.