A monopolistically competitive firm faces a downward-sloping demand curve because
A) of product differentiation.
B) its market decisions are affected by the decisions of its rivals.
C) it is able to control price and quantity demanded.
D) there are few substitutes for its product.
A
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How will an increase in federal government spending without an increase in taxes affect real GDP and the price level in the short run in a closed economy and in an open economy?
What will be an ideal response?
One way to increase economic efficiency in saving lives is to
a. shift resources toward methods with low cost per life saved b. shift resources toward methods with high cost per life saved c. allocate more resources to saving lives d. allocate fewer resources to saving lives e. move along the production possibilities frontier and increase the number of lives saved