Which of the following firms faces monopolistic competition?
a. A poultry farm selling eggs to different bakeries
b. A fashion store selling clothes at an up-scale boutique
c. A fruit-bowl shop at a local market
d. A movie hall selling tickets in advance for an upcoming blockbuster
b
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As a firm expands into overseas markets, information problems and the complexity of operating within many varied cultures and economies may result in
a. constant returns to scale b. diminishing marginal returns c. declining long-run marginal cost d. diseconomies of scale e. economies of scale
How does a change in taxes primarily affect aggregate demand? a. A tax change alters exports and net exports
b. A tax change alters investment by an equal and opposite amount. c. A tax change alters disposable income and consumption spending. d. A tax change alters government purchases by an equal amount.