For the monopolistically competitive firm, the demand curve it faces will be steeper the:
A. more easily the good can be substituted.
B. more complement goods are available.
C. less easily the good can be substituted.
D. less complement goods are available.
Answer: C
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The marginal rate of substitution
A) is minus the slope of the indifference curve. B) can be computed by measuring the curvature of the indifference curve. C) cannot be deduced from the properties of the indifference curve. D) can only be computed if we know the prices of all goods.
If the owners of different types of resources, which are combined to produce an output, agree on organizational relationships that define their responsibilities toward one another they have formed a _____
a. group b. company c. distribution network d. team
When a country specializes and trades with other countries, it is most likely that it specializes in goods for which
A) it has a comparative advantage. B) it has an absolute advantage. C) it has no advantage. D) are very costly to produce.
The price elasticity of demand measures the extent to which the quantity demanded changes when
A) the price of the good changes. B) the price of a related good changes. C) the expected future price of a good changes. D) consumer preferences change. E) both the demand and supply of the good change.