Monopolistically competitive firms face downward-sloping residual demand curves because these firms
A) have relatively few rivals (compared to competition).
B) sell differentiated products.
C) A and/or B.
D) None of the above.
C
Economics
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Refer to the figure above. After the demand curve shifts to D2, if the price is held below the new equilibrium, then:
A) the quantity demanded will equal the quantity supplied. B) the quantity demanded will be greater than the quantity supplied. C) the quantity demanded will be less than the quantity supplied. D) there will be zero deadweight loss.
Economics
Refer to Figure 9.3. If the market is in equilibrium, total consumer and producer surplus is
A) $0. B) $4. C) $5. D) $600. E) $800.
Economics