Which of the following is an example of product differentiation based on the location from which a product is sold?
a. An electronic company advertising its new range of slim smartphones
b. A cellphone service provider offering free access to a particular website
c. A car mechanic opening his new workshop near a busy highway
d. An electronic company offering a warranty of 5 years for its air conditioners
c
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Which of the following distinguishes a "straight-line" production possibilities curve from one that is "bowed out"?
a. A straight-line production possibilities curve exhibits increasing opportunity costs, whereas a bowed production possibilities curve does not. b. A straight-line production possibilities curve exhibits decreasing opportunity costs, whereas a bowed production possibilities curve does not. c. A straight-line production possibilities curve exhibits constant opportunity costs, whereas a bowed production possibilities curve does not. d. A straight-line production possibilities curve is upward sloping, whereas a bowed production possibilities curve is not.
When a profit-maximizing firm in a monopolistically competitive market is producing the long-run equilibrium quantity,
a. its average revenue will equal its marginal cost. b. its marginal revenue will exceed its marginal cost. c. it will be earning positive economic profits. d. its demand curve will be tangent to its average total cost curve.