The downward-sloping demand curve of a monopolistic competitor:
A. Reflects some level of control over its own price
B. Becomes eventually horizontal in the long run
C. Indicates collusion among the members of the product group
D. Ensures that the firm will produce at minimum average cost in the long run
A. Reflects some level of control over its own price
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What are the constraints that a firm faces? How does each constraint limit the firm's profit?
What will be an ideal response?
Electric car enthusiasts want to buy more electric cars at a lower price. All of the following events would have this effect except
A) technological advancement in the production of electric car batteries. B) an increase in the number of manufacturers of electric cars. C) a decrease in the price of lithium, which is used in the electric car batteries. D) an increase in the price of gasoline.