Because of product differentiation, a monopolistically ...

[folubunmi]

Because of product differentiation, a monopolistically competitive firm:
 a. possesses some degree of market power.
 b. is very similar to a perfectly competitive firm.
  c. faces a perfectly elastic demand curve.
 d. is unaffected by the elasticity of demand.

Question 2

Suppose a 10-mile taxi ride costs 6.50 in London and 10.00 in Los Angeles. If the exchange rate is 1 = 1.70 purchasing power parity holds.
 a. True
  b. False
  Indicate whether the statement is true or false

[cascooper22]

Answer to Question 1

a

Answer to Question 2

False