In Monopolistic Competition, Which of the Following Would Make an Individual

question 35

Multiple Choice

In monopolistic competition, which of the following would make an individual firm's demand curve less elastic?

• A)the purchase of more efficient machinery
• B)an increase in the price of the firm's product
• C)increased brand loyalty toward the firm's product
• D)an increase in the number of rival firms

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Definitions:

Federal Funds Market

A financial market that allows banks to borrow and lend excess reserves to one another, usually overnight, at an interest rate called the federal funds rate.

Short-Term Loans

Short-term loans are borrowing options designed to be repaid within a short period, typically less than a year, used by individuals or businesses for immediate financial needs.

Excess Reserves

The amount of reserves that a bank holds in excess of the minimum reserve requirements set by central banking authorities.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by a central banking authority.