Why does a local McDonald's face a downward-sloping demand curve for its Quarter Pounder? In monopolistically competitive markets, A. changing the price affects the quantity sold because there are substantial barriers to entry . B. changing the price does not affect the quantity sold because firms have market power . C. changing the price affects the quantity sold because firms are price takers. D. changing the price affects the quantity sold because firms sell differentiated products. E. changing the price does not affect the quantity sold because firms are price makers
Why does a local McDonald's face a downward-sloping demand curve for its Quarter Pounder? In monopolistically competitive markets, A. changing the price affects the quantity sold because there are substantial barriers to entry . B. changing the price does not affect the quantity sold because firms have market power . C. changing the price affects the quantity sold because firms are price takers. D. changing the price affects the quantity sold because firms sell differentiated products. E. changing the price does not affect the quantity sold because firms are price makers
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Why does a local McDonald's face a downward-sloping demand curve for its Quarter Pounder?
In monopolistically competitive markets,
A.
changing the price affects the quantity sold because
there are substantial barriers to entry
.
B.
changing the price does not affect the quantity sold because
firms have market power
.
C.
changing the price affects the quantity sold because firms are price takers.
D.
changing the price affects the quantity sold because firms sell differentiated products.
E.
changing the price does not affect the quantity sold because
firms are price makers
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