Which of the following is true of the demand curve faced by a monopolistically competitive firm?
a. The demand curve faced by a monopolistically competitive firm is kinked
b. The demand curve faced by a monopolistically competitive firm is downward-sloping.
c. The demand curve faced by a monopolistically competitive firm is upward-sloping.
d. The demand curve faced by a monopolistically competitive firm is horizontal.
b
You might also like to view...
When real Gross Domestic Product (GDP) falls, which of the following will automatically occur?
A) an increase in income tax revenues B) a decrease in all tax rates C) a decrease in unemployment compensation expenditures D) a decrease in income tax revenues
Which of the following is the best example of a public good?
a. Cars. b. Education. c. Radios. d. Air traffic control.
Figure 11-2
?
In Figure 11-2, which of the points are efficient allocations of resources?
A. A, B, and C B. B and C only C. C and B and D D. B only
In order to construct a more complete picture of the economic burden of government across income classes, economists usually
a. include tax payments as well as transfer payments received. b. focus only on the tax payments of wealthy tax payers. c. limit their analysis to taxes based on the ability-to-pay principle. d. focus their analysis on issues of tax efficiency.