If a monopolistic competitor lowers its price, it will attract a significant number of new customers.
Answer the following statement true (T) or false (F)
False
Because each monopolistically competitive firm has its own captive market- consumers who prefer its particular brand over competing brands-lower prices will not be effective at inducing consumers to switch brands. Instead, imperfectly competitive firms engage in nonprice competition.
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In the above figure, which of the following is TRUE regarding the movements from point A to B and from point C to D?
I) The movement from point A to B shows that the economy has chosen to produce 100 more jets. II) The movement from point C to D shows that the economy has chosen to produce 100 more jets. III) The movement from point A to B and from point C to D have the same opportunity cost. A) I and II B) I and III C) II and III D) I, II and III
A fixed exchange rate can be an equilibrium rate even if there is a permanent shift in the foreign exchange market supply and demand curves
a. True b. False Indicate whether the statement is true or false