Homework Clinic
Social Science Clinic => Economics => Microeconomics => Topic started by: sjones on Jul 1, 2018
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Monopolistically competitive firms face downward-sloping residual demand curves because these firms
A) have relatively few rivals (compared to competition).
B) sell differentiated products.
C) A and/or B.
D) None of the above.
Question 2
If the supply of labor to a monopsonist is everywhere unit elastic, and the marginal expenditure equals 1, then the wage will equal
A) 0.50.
B) 0.75.
C) 1.00.
D) 2.00.
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Answer to Question 1
C
Answer to Question 2
A