A chief purpose of long-term contracts is to improve agents'

One way to view the cost structure of monopolistic competition is to say that the cost of product differentiation is equal to

A) the difference between marginal revenue and marginal cost. B) the difference between the cost of production for a monopolistically competitive firm in an open market and the minimum average total cost. C) the sum of price and marginal cost. D) the sum of marginal cost and minimum average cost.

If the absolute price elasticity of demand for good X is 0.5, when there is a 10 percent increase in price, we can conclude that quantity demanded

A) has fallen by 50 percent. B) has fallen by 20 percent. C) has fallen by 10 percent. D) has fallen by 5 percent.