"As the price of personal computers continues to fall, demand increases." This headline is inaccurate because:
A. a change in the price of personal computers shifts the supply curve.
B. a falling price of personal computers increases the quantity demanded, not demand.
C. the statement is backwards: increased demand leads to lower prices.
D. a change in the price of personal computers shifts the demand curve.
Answer: B
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A) direct B) inverse C) proportional D) undefined
In the long run, marginal cost must equal marginal revenue for a monopolistic competitive firm, but not at the minimum point of the long-run average cost curve
a. True b. False Indicate whether the statement is true or false
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A. providing information to evaluate financial investments. B. providing credit that might otherwise not be available. C. offering tax-preferred borrowing opportunities. D. eliminating the risk of borrowing.
What are the similarities between perfect competition and monopolistic competition?
What will be an ideal response?