A decrease in the number of competitors in a monopolistically competitive market causes an increase in the price elasticity of demand for the output of each of the remaining firms in the market

In the problem of double marginalization, the resulting price is lower than if

a. The manufacturer were to sell directly to the consumer b. The manufacturer and the retailer were to merge c. All of the above d. None of the above

If a person produces capital goods, she sacrifices current production of consumer goods in order to obtain the capability of producing more goods and services in the future. This is called roundabout production

a. True b. False