The goal of product differentiation and advertising in monopolistic competition is to make
A. price more of a factor and product differences less of a factor in consumer purchases.
B. price less of a factor and product differences more of a factor in consumer purchases.
C. the firm productively efficient even if it is not allocatively efficient.
D. the firm allocatively efficient even if it is not productively efficient.
Answer: B
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U.S. potential GDP is the value of the goods and services produced in the United States ________
A. in the reference base year B. when the U.S. unemployment rate is zero C. when the U.S. economy is at full employment D. when the U.S. inflation rate is zero
A perfect-price-discriminating equilibrium maximizes
A) consumer surplus. B) the associated deadweight loss. C) the market inefficiency. D) total welfare.