Author Question: A monopolistically competitive firm derives its ability to influence price from: a. the perfectly ... (Read 48 times)

stock · **on:** Jun 30, 2018

A monopolistically competitive firm derives its ability to influence price from:
a. the perfectly elastic demand curve it faces.
b. barriers to entry.
c. its product, which is differentiated in some way from competing products.
d. its position as the sole supplier in the market.

Question 2

Suppose purchasing power parity exists in the car stereo market in the United States and Australia. If a car stereo costs 230 in the United States and the exchange rate is 1 = AUD1.67, the same car stereo may be purchased in Australia for approximately:
a. AUD 138.
b. AUD 230.
c. AUD 2,300.
d. AUD 384.
e. AUD 108.