Monopolistic competition is different from perfect competition in that every manufacturer
A. has a small monopoly, and differentiates the product.
B. takes the product quality as given, and chooses price.
C. takes output level as given, but must choose price.
D. differentiates product, but cannot advertise successfully.
Answer: A
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What will be an ideal response?
An increase in the cost of acquiring human capital will shift the labor supply curve to the left; eventually, this will tend to increase the equilibrium wage rate
a. True b. False
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