A monopolistically competitive firm faces a downward-sloping demand curve because
A) it is able to control price and quantity demanded.
B) there are few substitutes for its product.
C) of product differentiation.
D) its market decisions are affected by the decisions of its rivals.
Answer: C
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A multinational organization that aims to promote world economic growth through more financial stability is the
A) World Bank. B) International Monetary Fund. C) Federal Reserve System. D) International World Fund.
Answer the following statement true (T) or false (F)
1) Two industries that have the same four-firm concentration ratio can have significantly different Herfindahl indexes. 2) As it relates to oligopoly, game theory focuses on the strategic behavior of rival firms. 3) The highest possible value of the Herfindahl index is 1,000. 4) The U.S. breakfast cereal industry is an example of differentiated oligopoly. 5) The U.S. steel industry is an example of homogeneous oligopoly.