Author Question: A consumer has 40 that he wants to spend. He is faced with four options: a camera that costs 60, a ... (Read 40 times)

nevelica · **on:** Jun 29, 2018

A consumer has 40 that he wants to spend. He is faced with four options: a camera that costs 60, a cell phone that costs 150, a book that costs 10, and a Bluetooth speaker that costs 45.

Which of the following is a feasible option for the consumer? A) The book
B) The camera
C) The cell phone
D) The Bluetooth speaker

Question 2

How does the exit of firms from a monopolistically competitive market affect the demand curves faced by the existing firms?

What will be an ideal response?

izzat · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

The exit of firms from a monopolistically competitive market shifts the demand curves faced by the existing firms to the right and causes them to become steeper.