Author Question: The demand curve of a monopolistically competitive firm A) is downward-sloping because it must ... (Read 146 times)

Shelles

  • Hero Member
  • *****
  • Posts: 582
The demand curve of a monopolistically competitive firm
 
  A) is downward-sloping because it must cut its price to sell more.
  B) is horizontal because the firm must cut its price to sell more.
  C) is perfectly elastic.
  D) is downward-sloping because it sells an identical product.

Question 2

Marv Pilson has 50 worth of groceries in a shopping cart at his local Shop 'n Save. Assume that the marginal utility per dollar of the liter bottles of soft drink in Marv's cart equals 50.
 
  The marginal utility per dollar of the boxes of cereal in Marv's cart equals 20. Marv has only 50 to spend, but has not yet paid for his groceries. How can Marv increase his total utility without spending more than 50?
  A) Marv should buy fewer boxes of cereal and fewer bottles of soft drink. He can then spend more on other items.
  B) Marv should substitute his favorite soft drink or the cereal in his cart for generic brands that have lower prices.
  C) Marv should buy more boxes of cereal and fewer bottles of soft drink.
  D) Marv should buy fewer boxes of cereal and more bottles of soft drink.



shailee

  • Sr. Member
  • ****
  • Posts: 392
Answer to Question 1

A

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

For a complete list of videos, visit our video library