If Differentiation Makes the Market Demand Curve Less Elastic, Then

question 55

Multiple Choice

If differentiation makes the market demand curve less elastic, then

• A)consumer surplus increases.
• B)the market structure changes into a monopoly.
• C)price markup over marginal cost is lower than when products are identical.
• D)price markup over marginal cost is higher than when products are identical.

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Definitions:

Personal Dispositions

Patterns of thought, feeling, and behavior that are unique to an individual, contributing to how one responds to their environment.

Attitudes

Attitudes are psychological tendencies expressed by evaluating entities with some degree of favor or disfavor.

Attribution

The process by which individuals explain the causes of behavior and events, often as either internal dispositions or external situations.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting beliefs, ideas, or values.