Which of the following statements is true about monopolistically competitive firms?
A) Unlike perfectly competitive firms, monopolistically competitive firms are able to raise their prices without losing all of their customers.
B) Like perfectly competitive firms, monopolistically competitive firms are not able to raise prices without losing all of their customers because they face competition from firms selling similar products.
C) Like perfectly competitive firms, monopolistically competitive firms maximize their profits by setting price equal to marginal cost.
D) Unlike perfectly competitive firms, monopolistically competitive face perfectly inelastic demand curves.
Answer: A
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Which of the following accounted for the highest percentage of state and local spending?
a. education and health care b. police and fire protection c. highways d. social security
Deficit spending and the national debt are different terms for the same concept
Indicate whether the statement is true or false
Based on the present-aim standard a person who drinks gasoline and subsequently dies could be consider rational as long as:
A. her behavior helps other people. B. her death is not painful. C. she really likes the taste of gasoline and death. D. she thinks her behavior will result in more gasoline for other people.
If the money supply grows 7% during the year, and people expected the money supply to grow by 5%, what happens to the short-run aggregate supply curve, according to the misperceptions theory?
A) It shifts down. B) It shifts up. C) It doesn't shift. D) It shifts down unless Ricardian equivalence holds, in which case it doesn't shift.