Monopolistically competitive firms have a:
A. perfectly elastic demand curve.
B. downward-sloping demand curve.
C. horizontal demand curve.
D. perfectly inelastic demand curve.
Answer: B
You might also like to view...
An increase in the price of a good could be caused by a. An increase in supply
b. An increase in demand. c. A decrease in supply and an increase in demand. d. Either b. or c.
The Earned Income Tax Credit (EITC) is a more efficient means to redistribute income to people below the poverty line than direct cash transfers.
Answer the following statement true (T) or false (F)
If the costs of the training necessary to perform a job decrease, labor ________ shifts to the ________.
A. demand; left B. demand; right C. supply; left D. supply; right
Which of the following explains why the aggregate demand curve is downward sloping?
A. the interest rate effect B. the open economy effect C. the real-balance effect D. all of these