In a monopolistically competitive market with Dixit-Stiglitz preferences, the number of firms in the differentiated product market falls as goods in that market become less substitutable.
Answer the following statement true (T) or false (F)
False
Rationale: The number of firms falls as goods become more substitutable.
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The demand for labor by a certain firm fluctuates as the demand for that firm's product fluctuates
a. True b. False Indicate whether the statement is true or false
Harry's Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10 each. This year Harry's again produced 10,000 large pepperoni pizzas (identical to last year's pizzas) but sold them for $12 each. Based on this
information we can conclude that Harry's production of large pepperoni pizzas this year: A. increased nominal GDP by $20,000 but left real GDP unchanged. B. increased nominal GDP by $120,000 and increased real GDP by $100,000. C. left nominal GDP unchanged but increased real GDP by $20,000. D. increased nominal GDP by $120,000 but left real GDP unchanged.