Monopolistically competitive firms use product differentiation to
A. limit the number of firms in the industry.
B. block other firms from entering the industry.
C. achieve market power.
D. ensure long-run profits.
Answer: C
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As the wage rate rises, the income effect influences workers to choose ________ leisure, and the substitution effect influences workers to choose ________ leisure
A) more; less B) more; more C) less; less D) less; more
Is the "international adjustment mechanism" for fixed and flexible exchange rates the same? Discuss briefly
What will be an ideal response?
The main advantage of diversification as an investment policy is that it-
What will be an ideal response?
A large open economy reduces its investment demand. This causes the world real interest rate to ________ and the country's current account balance to ________.
A. rise; fall B. fall; rise C. fall; fall D. rise; rise