When new firms enter a monopolistically competitive industry, the market
A. Demand curve shifts to the left.
B. Supply curve shifts to the left.
C. Supply curve shifts to the right.
D. Demand curve shifts to the right.
Answer: C
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Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Define the types of principles of taxation, and illustrate with examples the different types of existing tax systems based on these principles
Refer to the above graph for a firm in pure competition. Line B is horizontal because:
A. the firm has a perfectly elastic demand curve. B. the firm has a perfectly inelastic demand curve. C. total revenue is greater than marginal revenue. D. marginal revenue is greater than total revenue.
Firms pay celebrities to endorse their products because they believe this will increase the demand for these products.
a. true b. false