As new firms enter a monopolistically competitive industry where profits are being made
A. the demand curve facing each firm decreases, thereby reducing prices and profits.
B. the market demand curve for the product decreases, thereby reducing prices and profits.
C. the demand curve facing each firm increases, thereby increasing prices and profits.
D. the market demand curve for the product increases, thereby increasing prices and profits.
A. the demand curve facing each firm decreases, thereby reducing prices and profits.
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If the price of a textbook rises and then students purchase fewer textbooks, an economic model can show a cause-and-effect relationship only if which of the following conditions holds:
a. students' incomes fall. b. tuition decreases. c. the number of students increases. d. everything else is constant. e. the bookstore no longer accepts used book trade-ins.
The combination of legal and illegal immigrants in the United States creates a Ushaped pattern between the number of immigrants and:
a. wages of competing b. American workers. their wages. c. their educational level. d. their jobs.
Answer the following questions true (T) or false (F)
1. Consider a country that produces only two goods: bird feeders and binoculars. Suppose it is possible for this country to increase its production of bird feeders without producing fewer binoculars. In this case, its current output combination is inefficient. 2. Any output combination along a production possibility frontier is associated with overused or unattainable resources. 3. A decrease in the labor force shifts the production possibilities frontier inwards over time.
Regressive taxes have a negative impact on citizens while progressive taxes have a positive impact
Indicate whether the statement is true or false