Which of the following is true of product differentiation?
a. Product differentiation is the first order derivative of the production function.
b. Product differentiation exists only when the products are actually different from each other.
c. Product differentiation exists when consumers perceive the products to be different.
d. Product differentiation exists when producers perceive the products to be different.
e. Product differentiation exists when similar goods are sold in geographically segregated markets.
c
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Product differentiation exists within an industry if
A) there are no substitutes for a product. B) there are close but not perfect substitutes for a product. C) the firm can sell all it wants at the chosen price. D) there is a monopoly.
Refer to Figure 15-4. What is likely to happen to this monopoly in the long run?
A) It will be regulated by the government because of its excess profits. B) New firms will enter the market to eliminate its profits. C) It will expand its output to take advantage of economies of scale so as to further increase its profit. D) As long as there are entry barriers, this firm will continue to enjoy economic profits.
Which of the following is NOT an automatic stabilizer?
A. Food stamps B. Unemployment insurance benefits C. Public assistance D. A supply-side tax cut
YearAntonio's Hourly wageConsumer Price Index2006$8.40201.62010$9.05218.1 Refer to Table 8.2. From 2006 to 2010, Antonio received a total of $0.65 in pay raises, and the CPI also increased as shown in the table. What was Antonio's real wage in 2010, if 2006 is used as the base year?
A. $9.05 B. $8.40 C. $8.37 D. $9.09