In the long run, if some monopolistically competitive firms are earning economic losses then
A) firms will leave the industry.
B) raise prices until they earn economic profits.
C) they will increase production until marginal costs fall.
D) new firms will enter the industry.
A
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Refer to Figure 18-1. Area F + G represents
A) the portion of sales tax revenue borne by consumers. B) the portion of sales tax revenue borne by producers. C) the excess burden of the sales tax. D) sales tax revenue collected by the government.
If the rate of job finding equals 19%, and the natural rate of unemployment is 5%, then the rate of job separation equals
A) 1%. B) 5.26%. C) 20.8%. D) 26.3%.
Suppose a constitutional amendment is passed that mandates a balanced federal budget every year and the President and Congress consistently carry this mandate out. This would be an example of
A) active policy making. B) decisive policy making. C) nondiscretionary policy making. D) cooperative policy making.
Which of the following are leakages from the circular flow of income?
a. Savings, taxes, and imports b. Investment, government purchases, and exports c. Investment, taxes and bonds d. Imports, wages and taxes