A monopolistically competitive firm differs from a perfectly competitive firm in that a monopolistically competitive firm:
a. faces a downward-sloping demand curve for its product
b. faces a horizontal demand curve at the market-clearing price.
c. is able to earn profits in the long run.
d. faces virtually no barriers to entry.
a
Economics
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Changes in the capital stock occur ________, and changes in the amount of labor that firms employ occur ________
A) quickly; quickly B) slowly; slowly C) slowly; quickly D) quickly; slowly
Economics
If bagels and croissants are substitute goods, which of the following is likely to occur if the price of bagels has decreased?
A) The demand curve for bagels shifts to the right. B) A leftward movement along the bagel demand curve. C) The demand curve for croissants shifts to the right. D) The demand curve for croissants shifts to the left.
Economics