"One of the defining features of monopolistic competition is product variety." Is the previous statement correct or incorrect?
What will be an ideal response?
The statement is correct. In monopolistic competition firms compete by producing similar but slightly differentiated products.
Economics
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If the price of Big Mac is $3.61 in the U.S. and 3.405 € in France, and PPP holds, what is the value of the euro in dollars that is implied by The Economist magazine's Big Mac index?
A) $1.060 B) $0.943 C) $1.943 D) None of the above.
Economics
If the price of a product is above equilibrium, what forces it down?
What will be an ideal response?
Economics