A firm that successfully differentiates its product or lowers its average cost of production creates
A) a perfectly inelastic demand curve for its product.
B) value for its customers.
C) entry barriers into its market.
D) economies of scale.
B
Economics
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In the neoclassical model, an increase in the savings rate
a. causes a more than proportionate increase in the capital to labor ratio. b. results in a less than proportionate increase in the capital to labor ratio. c. results in a proportionate increase in the growth rate of output. d. None of the above
Economics
The income elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price
a. True b. False Indicate whether the statement is true or false
Economics