To maximize their profits and defend those profits from competitors, monopolistically competitive firms must
A) achieve economies of scale.
B) differentiate their products.
C) lobby government to erect barriers to entry in their industries.
D) limit foreign competition in their markets by encouraging the government to impose tariffs and other trade restrictions.
B
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Refer to Figure 9.2. A movement from point d to point b could be caused by a(n)
A) increase in government spending. B) increase in the price of oil. C) increase in taxes. D) decrease in short-run aggregate supply.
A financial asset is considered a security if
A) the owner of the security receives dividends and realizes a capital gain when the asset is sold. B) its value increases after it is sold in a primary market. C) it can be sold in a secondary market. D) its value is secure; that is, the owner will not suffer a financial loss when the asset is sold.