To maintain their economic profits, firms in monopolistic competition must continually engage in
A) product innovation and development.
B) lowering their product's price.
C) raising their product's price.
D) realizing short-run losses.
E) making the demand for their product more elastic.
A
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If taxes are cut, there is
A) an increase in aggregate demand and the AD curve shifts rightward. B) a decrease in aggregate demand and the AD curve shifts leftward. C) an increase in the quantity of real GDP demanded and a movement up along the AD curve. D) a decrease in the quantity of real GDP demanded and a movement down along the AD curve. E) no change in aggregate demand, only a change in potential GDP.
The internal rate of return is likely to lead to incorrect decisions.
A. True B. False C. Uncertain
The natural unemployment rate is
A) equal to 0 percent. B) the rate at which cyclical unemployment is equal to 0 percent. C) the same as the cyclical unemployment rate. D) the rate at which cyclical unemployment is equal to 6 percent. E) none of the above.
If Q is total real output, K is capital in use, L is labor employed, an increase in the productivity of labor would imply a(n):?
What will be an ideal response?