Why is a firm in a monopolistically competitive industry considered a "mini" monopoly?
a. There are large number of sellers in the market.
b. Each firm in monopolistic competition is a price taker.
c. The product of each firm is unique in some way or the other.
d. Each firm faces a perfectly elastic demand curve.
e. There exists a large number of close substitutes of the products.
c
Economics
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Suppose that when the price of donuts rises 10%, the quantity demanded of donuts falls 3%. Based on this information, what is the approximate absolute price elasticity of demand for donuts?
A) 3.33 B) 0.3 C) 30 D) 1.3
Economics
Which of the following is generally NOT an example of a zero price?
A. Getting a refill of coffee at a restaurant B. Downloading another MP3 from iTunes C. Watching another movie on Netflix D. Sending another text message
Economics