Advertising, brand names, packaging, and celebrity endorsements all occur in monopolistically competitive markets because:
a. significant barriers to entry exist in the real world.
b. in the real world, there are very few markets with many firms.
c. that gives the producer some command over the price of their products.
d. product differentiation seldom occurs in the real world.
e. monopolistically competitive firms have an incentive to spend as much money as possible compared to their rivals.
c
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In the Keynesian model with a fixed money wage but a flexible price level, an increase in taxes will lower
a. output and the price level, but leave the interest rate unchanged. b. output, the price level and the interest rate. c. output and the interest rate, but leave the price level unchanged. d. output and the price level, but increase the interest rate. e. the price level and the interest rate, but leave output unchanged.