If an economy is producing a combination of goods that places it on the production possibilities curve, then it has:

Discuss the role of product differentiation and advertising in monopolistic competition

What will be an ideal response?

Refer to Figure 14-2. If the government delays Gigacom's entry and Xenophone moves first, is a threat by Gigacom that it will provide DSL service if Xenophone provides cable service a credible threat?

A) No, because Gigacom will lose $4.5 million in profits if it carries out its threat. B) Yes, Xenophone stands to lose $3 million in profit. C) Yes, because Gigacom's DSL service will drive Xenophone out of business. D) No, because as a second mover, it has no choice but to abide by the choices of the first mover.