The demand curve in monopolistic competition slopes downward because of:

a. strong barriers to entry.
b. product differentiation.
c. the small number of firms.
d. government regulation.
e. the similarities of the businesses.


b

Economics

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Assume the demand function for good X can be written as Qd = 80 - 3Px - 2Py + 10I where Px = the price of X, Py = the price of good Y, and I = Consumer income. This equation implies that X and Y are complements

Indicate whether the statement is true or false

Economics

An increase in uncertainty about the future will tend to ________ precautionary saving and ________ the desired level of wealth for households

A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease

Economics

Over the long run, a government's fundamental source of revenues is

A) printing money. B) user fees and taxes. C) exports. D) gold sales.

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When a firm in a monopolistically competitive market earns zero economic profit, its product price must equal marginal cost

a. True b. False Indicate whether the statement is true or false

Economics