Problem
1. For each of the following products, state if they are sold in a perfectly competitive market or in a monopolistically competitive market:
a) Dairy products (e.g., milk, cheese, etc.)
b) Cars
2. Suppose that in a given economy all goods and services produced are sold in perfectly competitive markets. Would you represent this economy using the classical or Keynesian approach? Explain why.
3. Do you think that the hourly wage (i.e., the price of labor) is a relatively flexible or a relatively sticky price? Explain why.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.