Exhibit 10-1 A monopolistic competitive firm
As presented in Exhibit 10-1, the short-run profit-maximizing output for the monopolistic competitive firm is:

Because banking is very __________-intensive, a bank generally becomes successful if it can __________ the ratio of salary and wages to total assets

A) capital; raise B) capital; lower C) labor; raise D) labor; lower

You are told that the price elasticity of demand for widgets is -0.75, the income elasticity of widgets is 2, and the cross-price elasticity of widgets and gadgets is 4. Carefully explain what information you can gather from each of these figures

What will be an ideal response?