Firms in monopolistically competitive markets can differentiate their products on the basis of:
a. geographical location.
b. service

Refer to the graph below. Which of the following factors will shift AD1 to AD2?

A. A decrease in the general price level
B. An increase in real interest rates
C. An increase in national incomes abroad
D. A decrease in the value of financial assets

Diminishing marginal returns occur when

A. all inputs are decreased. B. one input is increased and the others are held constant. C. all inputs are increased. D. one input is decreased while the other is increased.