To maximize their profits and defend those profits from competitors, monopolistically competitive firms must
A) achieve economies of scale.
B) differentiate their products.
C) lobby government to erect barriers to entry in their industries.
D) limit foreign competition in their markets by encouraging the government to impose tariffs and other trade restrictions.
B
You might also like to view...
When the government runs a budget deficit, we would expect to see that
A) public saving is positive. B) private saving will fall. C) G + TR < T. D) investment will fall.
We assume leisure is a normal good. This implies that
A) an increase in taxes decreases the demand for leisure. B) households maximize utility. C) preferences over consumption are well defined. D) an increase in the wage increases demand for leisure.
Does a tax on buyers affect the supply curve?
A. Yes, it shifts to the left by the amount of the tax.
B. Yes, it shifts to the right by the amount of the tax.
C. Yes, it shifts up by the amount of the tax.
D. No, there is change in the quantity supplied, but the supply curve does not move.
If more and more labor is employed while keeping all other inputs constant, the marginal physical productivity of labor will eventually:
a. increase. b. decrease. c. remain constant. d. cannot tell from the information provided.