Which of the following is characteristic of a monopolistically competitive firm?

A. The firm faces an upward-sloping demand curve.
B. The firm faces an inelastic demand curve.
C. The firm faces a horizontal demand curve.
D. The firm produces a differentiated product.

Answer: D

Economics

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When the monopoly firm is able to charge a higher price, the amount of ________ also increases, thus magnifying the importing nation's __________.

a. quota rents; losses b. comparative advantage; gains from trade c. profits; welfare d. protection; employment gains

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How could legal immigration increase a nation’s stock of capital and what effects would such an increase have on productivity, production costs and product prices?

What will be an ideal response?

Economics