Product differentiation allows a firm to charge a higher price because the residual demand curve facing the firm
A) is more elastic than the residual demand curve without product differentiation.
B) is less elastic than the residual demand curve without product differentiation.
C) is horizontal.
D) shifts to the left.
Question 2
Under monopsony, the wage rate
A) equals the marginal product of labor.
B) equals the marginal revenue product of labor.
C) is less than the marginal revenue product of labor.
D) is greater than it would be under perfect competition.
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