An implication of the downward slope of the demand curve for a monopolistic competitive firm is that
A. its marginal revenue curve slopes downward but lies below the demand curve.
B. its marginal revenue curve is the same as the demand curve.
C. its marginal revenue curve slopes upward.
D. its marginal revenue curve slopes downward but lies above the demand curve.
Answer: A
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Which of the following will cause an inward shift in the demand for steaks at a restaurant?
a. A report by the American Medical Association states that the consumption of steak reduces the risk of cardiovascular disease b. A 50 percent reduction in the price of steaks c. A double-digit increase in the price of chicken d. A recession leading to a significant fall in the income levels of consumers e. The expectation that the price of steaks will double within two months
Which of the following would reduce the price of basketballs and increase the quantity sold?
a. An increase in the demand for basketballs. b. A decrease in the demand for basketballs. c. A decrease in the supply of basketballs. d. An increase in the supply of basketballs.
Adam Smith describes a visit to a car factory when discussing economies of scale in his book An Inquiry into the Nature and Causes of the Wealth of Nations
a. True b. False Indicate whether the statement is true or false
A perfect monopoly:
A. can be a single seller or small group of firms. B. can offer a product at the lowest cost possible. C. controls 100 percent of the market for a product. D. always engages in price discrimination.