Product differentiation helps determine the slope of the demand curve facing a firm in monopolistic competition
a. True
b. False
A
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In ________ market structure, a firm's output depends ________
A) an oligopoly; only on its own marginal revenue and marginal cost curves B) a monopolistically competitive; in part on its competitors' price and quantity decisions C) an oligopoly; in part on its competitors' price and quantity decisions D) a monopolistically competitive; only on its marginal revenue curve
A decrease in aggregate demand causes a decrease in ________ only in the short run, but causes a decrease in ________ in both the short run and the long run
A) the price level; real GDP B) the price level; the price level C) real GDP; real GDP D) real GDP; the price level
A tax on a good causes the size of the market to increase
a. True b. False Indicate whether the statement is true or false
When goods do not have a price, which of the following primarily ensures that the good is produced?
a. buyers b. sellers c. the market d. government