Author Question: In monopolistic competition, product improvement and development A) are valued by the consumer at ... (Read 36 times)

cagreen833 · **on:** Jun 29, 2018

In monopolistic competition, product improvement and development

A) are valued by the consumer at an amount equal to the costs the producers have incurred.
B) yields a marginal benefit to the producer equal to price of the good.
C) is less than its efficient amount.
D) None of the above answers are correct.

Question 2

In an indifference curve/budget line diagram, at your consumer equilibrium, that is, your best affordable point, which of the following statements is CORRECT?

A) Any movement upward or downward on your budget line will move you to a less preferred point.
B) Any movement upward or downward on your indifference curve will move you to a less preferred point.
C) Your marginal rate of substitution is greater than the magnitude of the budget line by as much as possible.
D) All of the above are correct.