Monopolistically competitive firms sell goods that are
a. close substitutes
b. perfect substitutes
c. not substitutes
d. not differentiated products
e. complements
A
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Lentz's Incorporated sells paper in a perfectly competitive market at a price of $2 per ream. At the profit-maximizing (cost-minimizing) level of output, average total cost is $2.50 per ream and average variable cost is $1.95 per ream
Should the firm continue to operate in the short run? Explain.
Which of the following is least likely to increase the demand for new tires?
a. a decrease in the price of tires b. a decrease in the price of cars c. an increase in consumer income d. an increase in the number of miles people drive per year
A candidate who understands that in a two-person race the person closer to the center of the voter distribution will win is likely to
A) first take polls to figure out what the voters are thinking and then afterward propose policies that are consistent with the polls. B) first put forth his or her views on a whole host of issues and then afterward take polls to see if the majority of voters agree with him. C) speak in specific terms about what needs to be done. D) a and c E) b and c
A local restaurant offers an "all you can eat" Sunday brunch for $12. Susan eats four servings but leaves half of a fifth helping uneaten. Why?
What will be an ideal response?