Firms in a monopolistically competitive industry maximize profits by
a. equating total revenue and total cost
b. treating price as given and maximizing output
c. minimizing costs
d. producing the level of output at which MR = MC
e. producing the level of output at which TR = TC
D
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Montesia is a country that produces kiwis. After the market for kiwis in Montesia is opened to international trade, there is a decrease in the domestic quantity supplied of kiwis and an increase in the domestic quantity demanded of kiwis. Montesia should: a. import kiwis
b. export kiwis. c. not participate in trade. d. impose a tariff on kiwis.
The exchange rate changed from € 2.5/ $ to € 2.0/ $. Therefore:
a. The euro appreciated by 25% and the dollar depreciated by 25%. b. The euro depreciated by 25% and the dollar appreciated by 25%. c. The euro appreciated by 20% and the dollar depreciated by 25%. d. The euro appreciated by 25% and the dollar depreciated by 20%. e. The euro depreciated by 25% and the dollar appreciated by 20%.