Author Question: Refer to the table above. If the firm is a monopolistic competitor, what is the equilibrium price ... (Read 82 times)

notis · **on:** Jun 29, 2018

Refer to the table above. If the firm is a monopolistic competitor, what is the equilibrium price charged by the firm?

A) 77
B) 80
C) 65
D) 57

Question 2

Explain whether the statement The government should increase tariffs on Japanese cars to protect the American car industry from competition, is a normative or positive statement.

What will be an ideal response?

dominiqueenicolee · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

C

Answer to Question 2

The statement is normative. The statement is a normative statement because it depends on a value judgment, namely that the government should protect the American car industry from competition.