The cross price elasticity of demand is measured by the
A) percentage change in the quantity demanded of one good divided by the percentage change in quantity demanded of another good.
B) percentage change in the price of one good divided by the percentage change in price of another good.
C) percentage change in the demand for one good divided by the percentage change in price of another good.
D) percentage change in the price of one good divided by the percentage change in the demand for another good.
Answer: C
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The marginal revenue curve of a monopolistic competitor ________
A) lies above the demand curve B) lies below the demand curve C) is the same as the demand curve D) is the same as the supply curve
Monopolistically competitive firms:
A. earn zero economic profits in both the short run and the long run. B. can earn economic profits or losses in both the short run and the long run. C. earn economic profits in the short run but zero economic profits in the long run. D. can earn either profits or losses in the short run but earn zero economic profits in the long run.