A decrease in price allows a consumer to attain a higher indifference curve
Indicate whether the statement is true or false
TRUE
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Monopolistically competitive firms face downward sloping residual demand curves because these firms
A) have relatively few rivals (compared to competition). B) sell differentiated products. C) A and/or B. D) None of the above.
The marginal revenue product of a resource is:
a. the marginal product of the resource multiplied by the price of the product it helps to produce. b. the price of the product times the price of the resource. c. larger when the product price is smaller. d. larger when the marginal product is smaller.
Which of the following is included in M2 but not in M1?
a. demand deposits b. corporate bonds c. large time deposits d. money market mutual funds
By promoting its brand name heavily, the monopolistically competitive firm
A. signals its intention to leave the industry. B. earns more profit in the long run. C. signals its long-term intention to stay in the industry. D. guarantees a short run profit.