A benefit to consumers of monopolistically competitive markets is that:

A. consumers only have to choose from one product.
B. consumers have a variety of products from which to choose.
C. goods are sold at the lowest possible average cost of production.
D. price is equal to marginal cost in equilibrium.

Answer: B

Economics

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When the price of a movie ticket falls from $14 to $10, the quantity of tickets demanded increases from 500 to 700 a day. What is the price elasticity of demand for movie tickets? (Use the midpoint method.)

What will be an ideal response?

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If domestic savings is growing faster than domestic investment, the current account balance should be

A) increasing. B) decreasing. C) unchanged. D) eliminated.

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