The most important factor in determining the long-run profit potential in monopolistic competition is
A) free entry and exit.
B) the elasticity of the market demand curve.
C) the elasticity of the firm's demand curve.
D) the reaction of rival firms to a change in price.
A
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Total utility is maximized in the consumption of two goods by equating the:
a. prices of both goods for the last dollar spent on each good. b. marginal utilities of both goods for the last dollar spent on each good. c. ratios of marginal utility to the price of both goods for the last dollar spent on each good. d. marginal utility of one good to the price of the other.
When the Fed purchases U.S. government securities through the open market, the money supply: a. increases, the interest rate falls, and the quantity of money demanded increases. b. falls, the interest rate falls, and the quantity of money demanded increases
c. increases, the interest rate increases, and the quantity of money demanded increases. d. falls, the interest rate increases, and the quantity of money demanded falls. e. falls, the interest rate falls, and the quantity of money demanded falls.