The monopolistically competitive seller's demand curve will become more elastic the:
A. more significant the barriers to entering the industry.
B. greater the degree of product differentiation.
C. larger the number of competitors.
D. smaller the number of competitors.
Answer: C
You might also like to view...
Suppose the peso-dollar foreign exchange rate changes from 50 pesos per dollar to 30 pesos per dollar. Then the peso has ________ against the dollar and the dollar has ________ against the peso
A) appreciated; depreciated B) appreciated; appreciated C) depreciated; appreciated D) depreciated; depreciated
The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. Number of EmployeesTotal DonationsAverage DonationsTotal Labor CostsAverage Labor Costs1$30,000 $8,0002$42,426 $17,000 3 $17,321$27,000 4$60,000 $9,5005 $13,416$50,000 The President of State U decides to hire fundraising employees as long as their average benefit exceeds their average cost. This results in ________ employees being hired and a net benefit (total donations minus total labor costs) of ________.
A. 5; $67,080 B. 5; $17,080 C. 4; $22,000 D. 4; $60,000
Assume there is an improvement in technology that increases the marginal product of each unit of labor. This would have the effect of:
A) reducing the average total cost, average variable cost, and marginal cost of production. B) increasing the average total cost, average variable cost, and marginal cost of production. C) reducing the average variable cost and marginal cost of production, but average total cost would be unchanged. D) reducing the average total cost and average variable cost of production, but marginal cost would be unchanged.
If the income elasticity of money demand is 3/4 and income increases 8%, by about how much does the price level change?
A) Falls by 6% B) Unchanged C) Rises by 6% D) Rises by 8%