Monopolistically competitive firms use a(n) ________ strategy to achieve market power.

When a consumer spends income so that the ratio of marginal utilities (MUs) of all goods purchased equals the ratio of their prices, the consumer is

a. maximizing marginal utility b. spending too much on all goods c. maximizing total utility d. beyond the point of diminishing marginal utility e. behaving in opposition to the principal of rational behavior

If the wage is below the marginal revenue product, then a profit-maximizing firm will

a. employ more workers b. employ fewer workers c. see an increase in its demand for labor d. see an increase in its supply of labor e. see a fall in its demand for labor