A monopolistically competitive firm differs from a perfectly competitive firm in that a monopolistically competitive firm:
a. faces a downward-sloping demand curve for its product.
b. faces a horizontal demand curve at the market-clearing price.
c. is able to earn profits in the long run.
d. faces virtually no barriers to entry.
Question 2
If you receive a dollar return of 6 percent on a one-year Korean bond that yields 10 percent annually, this means that between the purchase date and the time of maturity:
a. the Korean won (KRW) has depreciated 4 percent against the U.S. dollar.
b. the dollar price of the Korean won (KRW) has risen by 10 percent.
c. the percentage change in the dollar per Korean won exchange rate is 6 percent.
d. the dollar proceeds from the Korean bond are 4 percent higher than the initial dollar investment.
e. the dollar has depreciated 16 percent against the Korean won.
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