Assume price exceeds average variable cost over the relevant range of demand. If a monopolistically competitive firm is producing at an output where marginal revenue is $23 and marginal cost is $19, then to maximize profits the firm should

Which of the following does NOT influence the price elasticity of demand?

A) the amount by which the demand curve shifts when the price of another good changes B) the number of substitutes available to consumers C) the price of the good relative to total income D) the time period buyers have to respond to a price change E) whether the good is a necessity or a luxury

When the cross price elasticity between good X and other related goods is positive and very low, firm X can be assumed to have:

A) minimal market power. B) moderate market power. C) a significant amount of market power. D) virtually no market power.