Refer to Figure 10.3. Inflation increases most rapidly as the economy moves from

A firm that practices group price discrimination will set the lower price in the market that has the most elastic demand

Indicate whether the statement is true or false

Monopolistically competitive and purely competitive industries are similar in that:

A. both are assured of short-run economic profits. B. both produce differentiated products. C. the demand curves facing individual firms are perfectly elastic in both industries. D. there are few, if any, barriers to entry.