Monopolistic firms that practice international dumping:
a. suffer losses on their sales in foreign markets.
b. suffer losses on their sales in domestic markets.
c. maximize their monopoly profits.
d. are subject to antidumping taxes in their home countries.
Ans: c. maximize their monopoly profits.
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If the real interest rate is lower than the equilibrium real interest rate:
A) the quantity of credit demanded equals the quantity of credit supplied. B) the quantity of credit demanded falls short of the quantity of credit supplied. C) the quantity of credit supplied falls short of the quantity of credit demanded. D) interest rates tend to fall further.
In monopolistic competition, each firm supplies a small part of the market. This occurs because
A) there are barriers to entry. B) there are no barriers to exit. C) there is a large number of firms. D) firms produce differentiated products. E) there is a large number of buyers.