Suppose some firms exit an industry characterized by monopolistic competition. We would expect the demand curve of a firm already in the industry to
A. shift to the right.
B. shift to the left.
C. become less elastic.
D. remain the same since entering firms serve other customers in the market.
Answer: A
You might also like to view...
If you wish to maintain a constant purchasing power when you retire, you should choose retirement income options that are:
A. inflated. B. deflated. C. nominal. D. indexed.
Effective price floors keep market price
A. above the equilibrium price and create surpluses. B. above the equilibrium price and create shortages. C. below the equilibrium price and create surpluses. D. below the equilibrium price and create shortages.
Suppose that the real exchange rate between the United States and Kenya is defined in terms of baskets of goods. Other things the same, which of the following will increase the real exchange rate (that is increase the number of baskets of Kenyan goods a basket of U.S. goods buys)?
a. an increase in the number of Kenyan shillings that can be purchased with a dollar b. an increase in the price of U.S. goods c. a decrease in the price in Kenyan shillings of Kenyan goods d. All of the above are correct.
The price at which a good or service is traded on international markets is called the ________ price.
A. universal B. international C. market D. world