Branding allows monopolistically competitive firms to:
a. achieve allocative efficiency
b. increase demand and profits.
c. produce at the lowest marginal cost.
d. achieve productive efficiency.
b
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The major problem facing the economy is high unemployment and weak economic growth. The inflation rate is low and stable. Therefore, the Federal Reserve decides to pursue a policy to increase the rate of economic growth. Which policy changes by the Fed would reinforce each other to achieve that objective?
A. Buying government securities and raising the reserve requirement. B. Selling government securities and raising the discount rate. C. Buying government securities and lowering the discount rate. D. Selling government securities and lowering the discount rate.
If a union is able to decrease the supply of workers in a competitive labor market but the union cannot affect the demand for its members' labor, then
A) wages and the quantity of labor hired will both increase. B) wages will increase but the quantity of labor hired will decrease. C) wages will decrease but the quantity of labor hired will increase. D) wages and the quantity of labor hired will both decrease.
One way the consumer price index (CPI) differs from the GDP chain price index is that the CPI:
a. uses current year quantities of goods and services. b. includes separate market baskets of goods and services for both base and current years. c. includes only goods and services bought by typical urban consumers. d. is bias free.
Which of the following is a problem when comparing GDPs per capita between nations?
a. GDP per capita fails to measure income distribution. b. Fluctuations in exchange rates affect differences in GDP per capita. c. GDP per capita is subject to greater measurement errors for LDCs compared to IACs. d. All of these.