For the monopolistically competitive firm, the steepness of the demand curve depends on:
A. the number of consumers in the market.
B. the steepness of the MC curve.
C. the availability of close substitutes.
D. None of these statements is correct.
Answer: C
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What are the key assumptions of the Lewis model that give rise to its conclusions? How would the theory's conclusions differ if these assumptions do not hold?
What will be an ideal response?
Perfectly competitive markets:
A. are more of an idealized model economists use than a real-life occurrence. B. are the most common type of market in the United States. C. tend to have relatively few buyers. D. tend to have relatively few sellers.
The cross-price elasticity between baseballs and tennis balls is likely to be a large positive number
a. True b. False Indicate whether the statement is true or false
A monopolist maximizes profit by producing the quantity at which MC = MR, just like a perfect competitor.
Answer the following statement true (T) or false (F)