The value of the absolute price elasticity of demand for good X is 4. The absolute price elasticity for good Y is 1. Which good's quantity demanded is more responsive to a change in price?

In monopolistic competition, there is inefficiency because price is greater than marginal cost. What brings about this inefficiency?

A) high concentration, as indicated by the large concentration ratio B) product differentiation C) freedom of entry and exit D) marginal cost rises as more output is produced E) the fact there are many firms in the market

According to the graph shown, if a firm is producing at Q2, and it is identical to others in the market:

A. profits are not being maximized. B. firms will enter this market. C. economic profits are zero. D. firms will leave this market.