If firms differentiate their products in different ways and charge different price because of these differentiation factors, then
A) demand must be perfectly elastic. B) the law of one price is not violated.
C) transactions costs are being ignored. D) the firm must not be maximizing profit.
B
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In the long-run equilibrium, both the perfectly competitive firm and the monopolistically competitive firm produce the output at which MR=MC and charge a price equal to the average total cost of production
Indicate whether the statement is true or false
The upward and downward movement of aggregate output produced in the economy is referred to as the
A) roller coaster. B) see saw. C) business cycle. D) shock wave.
A ration coupon limits how much a producer can produce
Indicate whether the statement is true or false
If a competitive firm is operating at its efficient scale, then is the firm's profit positive, zero, or negative?