One of the reasons for low cross-price elasticity in monopolistic competition and high cross-price elasticity in perfect competition is that
A. Firms in perfect competition differentiate their products.
B. To save money, firms in monopolistic competition do not advertise.
C. Consumers do not have perfect substitutes in perfect competition.
D. In monopolistic competition consumers loyal to particular brands view other available products as poor substitutes.
Answer: D
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A) a monopoly; consumer surplus B) the government; economic profit C) consumers; a monopoly D) the government; consumer surplus E) competitive producers; a monopoly
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Which of the following countries had an economic growth rate equal to zero between 1960 and 2004?
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