Which of the following statements is true about monopolistically competitive firms?
A) Like perfectly competitive firms, monopolistically competitive firms are not able to raise prices without losing all of their customers because they face competition from firms selling similar products.
B) Unlike perfectly competitive firms, monopolistically competitive face perfectly inelastic demand curves.
C) Like perfectly competitive firms, monopolistically competitive firms maximize their profits by setting price equal to marginal cost.
D) Unlike perfectly competitive firms, monopolistically competitive firms are able to raise their prices without losing all of their customers.
D
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If the Fed promises to conduct a(n) ________ for several years, inflation expectation will be ________
A) contractionary fiscal policy; high B) expansionary monetary policy; high C) contractionary monetary policy; high D) expansionary fiscal policy; low
Which of the following contributed to the rising mortgage default and foreclosure rates and the eventual economic crisis of 2008?
a. tightened mortgage lending standards and the reduction of loanable funds during 2001-2005 b. the increase in the greed of Wall Street bankers and other commercial lenders c. the substantial increase in sub-prime and adjustable rate mortgages as a share of the total during 2001-2006 d. the increase in the household savings rate during the two decades following 1985 e. the increase in fixed rate mortgages as a share of the total during the decade prior to the crisis
According to 2017 OECD data, American life expectancy at birth
A. is 27th among the 34 OECD members. B. is the shortest in the OECD. C. trails only Denmark. D. is the highest in the world.
In pure competition, marginal revenue is:
A. equal to total revenue. B. less than product price. C. equal to product price. D. greater than product price.