Imperfectly competitive firms engage in nonprice competition.
Answer the following statement true (T) or false (F)
True
Because each monopolistically competitive firm has its own captive market- consumers who prefer its particular brand over competing brands-lower prices will not be effective at inducing consumers to switch brands. Instead, imperfectly competitive firms engage in nonprice competition.
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The PPP index:
A. describes the overall differences in poverty levels between countries. B. describes the overall inequality present in one country compared to another. C. describes the overall difference in prices between countries. D. None of these is true.
If an increase in the price of some goods outweighs other prices that remain constant or decrease then there is:
A. Inflation. B. Deflation. C. Stagflation. D. Reflation.
Refer to the above diagram for good R. A shift in the supply curve from S2 to S1 would best be explained by:
A. government imposing a tax on good R. B. an improvement in the technology used to produce good R. C. a decrease in the price of resources used to produce good R. D. an increase in the price of good R.
You sell your good in a perfectly competitive market where the market price is $7.00. When you sell 100 units your total revenue is $700. When you sell 101 units:
A. total revenue increases by less than $7. B. total revenue increases by exactly $7. C. total revenue increases by more than $7. D. total revenue may increase or decrease.