In the long run, what happens to the demand curve facing a monopolistically competitive firm that is earning short-run profits?
A) The demand curve will shift to the right and became more elastic.
B) The demand curve will shift to the right and became less elastic.
C) The demand curve will shift to the left and became more elastic.
D) The demand curve will shift to the left and became less elastic.
C
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The unemployment rate tells us
A) the fraction of people who want to be working but are not. B) the fraction of people who are not working and do not want to be working. C) the fraction of people who are not working and have quit looking for jobs. D) all of the above
If firms in a monopolistically competitive industry are making profits in the short run
A) some firms will ultimately exit the industry. B) barriers to entry will be erected to keep out rivals. C) new firms will enter the market. D) they will resort to advertising wars to help sustain these profits.
Refer to Figure 22-5. Based on the "catch-up line" drawn above, poorer countries are more likely to be at a point like ________, where growth in GDP is relatively ________, while richer countries are more likely to be at a point like ________, w
growth in GDP is relatively ________. A) B; high; A; low B) B; low; A; high C) A; high; B; low D) A; low; B; high
Briefly explain the major argument of the factor endowment trade theory
What will be an ideal response?