In a monopolistically competitive market,
a. there are only a few sellers.
b. each firm takes the price of its product as given.
c. firms can enter or exit the market without restrictions.
d. each firm produces a product that is essentially identical to the products of other firms in the market.
c
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Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point d?
A) a decrease in income B) an increase in the relative price of a soft drink C) a decrease in the relative price of a soft drink D) a decrease in the price of bottled water
If John's marginal benefit derived from the consumption of another candy bar is greater than the price of the candy bar:
a. John will not purchase any more candy bars. b. John will increase his total satisfaction by purchasing the candy bar. c. the opportunity cost of the candy bar is lower than the price. d. John will decrease his total utility if he purchases the candy bar.