If a firm's demand curve in a monopolistically competitive market is shifting left:
A. firms must be exiting the industry.
B. economic profits must be increasing.
C. competition is likely entering with similar products.
D. None of these statements is true.
Answer: C
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In a progressive income tax system,
A) the marginal tax rate exceeds the average tax rate. B) the average tax rate exceeds the marginal tax rate. C) high income earners pay a lower percentage of their income in taxes than do low income earners. D) the tax rate depends solely on how long an individual has been in the labor force.
A bank receives a demand deposit of $5,000 . The bank loans out $3,500 of this deposit and increases its excess reserves by $500 . What is the required reserve ratio?
a. 10% b. 20% c. 40% d. 60%
President Gerald Ford referred to inflation as
a. a blight on our nation's economy. b. a necessary evil to combat high unemployment. c. public enemy number one. d. a fly in the ointment.
The fraction of a change in income that is spent on consumption is known as _____
Fill in the blank(s) with the appropriate word(s).