Product differentiation:
a. is carried out by both perfectly competitive and monopolistically competitive firms.
b. is succesful if a firm faces a relatively inelastic demand curve.
c. does not allow the firm to raise its price without losing all of its customers.
d. cannot be accomplished through advertising or trivial product changes.
e. if carried out successfully enables the firms to enjoy market power.
e
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Unemployment compensation is an example of:
A) non-discretionary expenditures. B) discretionary expenditures. C) taxes. D) none of the above.
For firms that sell one product in a perfectly competitive market, average revenue is:
A. calculated by total revenue divided by total output. B. equal to marginal revenue. C. equal to the market price. D. All of these are true.
Which of the following is an example of a public good?
A. a weather warning system B. a sofa C. a bottle of soda D. a television set
The price of medical care in the United States has:
A. remained relatively unchanged in recent years. B. risen slower than the overall price level. C. risen at the same pace as the overall price level. D. risen faster than the overall price level.