How, other than by adjusting price, do firms in monopolistic competition compete?
What will be an ideal response?
The two main ways firms in monopolistic competition compete other than by adjusting price is through product development and advertising.
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A decrease in government transfer payments
A) increases aggregate demand. B) increases the aggregate quantity demanded. C) decreases the aggregate quantity demanded. D) decreases aggregate demand.
At an equilibrium price: a. quantity demanded exceeds quantity supplied. b. quantity demanded equals quantity supplied
c. quantity demanded is less than quantity supplied. d. there is no scarcity.
Inflation leads to: a. higher menu costs
b. an increase in the propensities to consume. c. an increase in the potential gross domestic product. d. an increase in the effectiveness of monetary policy.
In a monopolistically competitive industry,
A. firms are small relative to the total market. B. firms are large relative to the total market. C. there is only one firm. D. firms can be either large or small relative to the total market.