Product differentiation allows a firm to charge a higher price because the residual demand curve facing the firm
A) is more elastic than the residual demand curve without product differentiation.
B) is less elastic than the residual demand curve without product differentiation.
C) is horizontal.
D) shifts to the left.
B
You might also like to view...
Total expenditure equals
A) C + I + G + NX. B) C + I + G - NX. C) C + I - G + NX. D) C - I + G + NX. E) C - I - G - NX.
Scott is a woodworker and charges $125 an hour for his time manufacturing custom-made wood products. For his wife's birthday, he designs and creates an intricate birdseye maple jewelry box that takes him 15 hours to complete
By how much and in what direction does GDP change as a result of his efforts? A) GDP rises by $125. B) GDP is not affected by Scott's production of the jewelry box. C) GDP rises by $1,875. D) GDP falls by $1,875.