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ECO Answers - 4 According to the principle of diminishing...

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4. According to the principle of diminishing returns, an additional worker decreases total output (Points :1) True False 5. To compute the price elasticity of demand, we divide the percentage change in price by the percentage change in quantity demanded (Points :1) True False 6. If the price elasticity of demand is 0.60, a 10 percent increase in price will decrease the quantity demanded by 6 percent. (Points :1) True False 9. Which of the following is not a characteristic of a monopolistically competitive market? (Points :1) Firms must take the market price as given There are no artificial barriers to entry. Firms sell differentiated products. There are many firms. 10. Which of the following is not a characteristic of a monopolistically competitive market? (Points :1) Firms have some control over price. Firms hold patents on their products. There are no artificial barriers to entry. The products that firms sell are slightly different.
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11. Which of the following is not a characteristic of a monopolistically competitive market? (Points :1) There are many firms. There are substantial barriers to entry. Firms have control over price. Firms sell differentiated products 13. When firms cooperate with each other rather than compete: (Points :1) both consumers and firms end up better off. they will agree to set low prices to help each other out.
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