Which of the following is an accurate statement about a monopolistically competitive firm?
a. It uses ads to sell as much of a product as competitors do at the going price.
b. It uses ads to continue selling a product even with decreasing prices.
c. It uses ads to sell a product even with an expected price increase.
d. It uses ads to sell more of a product than competitors do at the going price.
d. It uses ads to sell more of a product than competitors do at the going price.
You might also like to view...
A perfectly competitive ebook publishing firm currently sells its ebook at the market price of $6. Its average total cost is $5.50. In this case:
a. since average total cost is less than the price, the firm will shut down. b. the firm has positive economic profits. c. the firm is losing money but will continue to operate. d. the firm has zero economic profits.
If the government wishes to decrease GDP by $2,000b, and the MPC is 0.6, it should:
A. increase its spending by $800b. B. decrease its spending by $800b. C. decrease its spending by $1,200b. D. increase its spending by $1,200b.