Which of the following is most likely to be a monopolistically competitive firm?

A) a soybean farmer
B) a lettuce farmer
C) a municipal water district
D) a fast food restaurant

Answer: D

Economics

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If the nominal money supply grows 5%, real income falls 2%, and the income elasticity of money demand is 0.8, then the inflation rate is

A) 3.0%. B) 3.4%. C) 6.6%. D) 7.0%.

Economics

Assume that the market demand for a good is p = 100 - Q. Assume that the marginal product of labor is 1 and the firm can get all the labor it needs at a wage equal to 5. Compare the quantity of labor hired if the output market is competitive with the quantity hired if the output market is a monopoly

What will be an ideal response?

Economics