The greater the the number and closeness of substitutes available between monopolistically competitive firms
A) the greater the ability of a firm to raise its price above the price of close substitutes.
B) the smaller the ability of a firm to raise its price above the price of close substitutes.
C) the more inelastic the demand curve.
D) the greater the positive economic profits for a single firm.
Answer: B
Economics
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Efficiency wage is another name for the minimum wage
Indicate whether the statement is true or false
Economics
Although a monopoly can charge any price it wishes, it chooses:
a. the highest price. b. price equal to marginal cost. c. the price that maximizes profit. d. competitive prices. e. a fair price.
Economics