Firms in monopolistically competitive markets spend significant sums on product differentiation because:
a. it enables them to earn positive profits in the short run.
b. it increases the elasticity of demand for a firm's product.
c. it reduces the number of competitors.
d. it causes the firm's supply curve to become horizontal so the firm can expand output indefinitely.
e. it causes the firm's demand curve to become horizontal so that it can charge a fixed price for its product.
a
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Which of the following questions is a macroeconomic issue?
A) How many more pounds of cookies will a consumer purchase if the price of cookies decreases? B) What effect would a cure for Mad Cow Disease have on the market for beef? C) What is the future growth prospect for an economy? D) How many workers should the owner of a business hire?
New computer technology has
A) increased the cost of financial innovation. B) increased the demand for financial innovation. C) reduced the cost of financial innovation. D) reduced the demand for financial innovation.