A monopolistically competitive firm that is earning profits will, in the long run, experience all of the following except
A) demand for the firm's product becomes more elastic.
B) a decrease in demand for its product.
C) new rivals entering the market.
D) a decrease in the number of rival products.
D
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There are four structural components to a perfectly competitive market. Which one of the four components is the most important to market operation and why?
What will be an ideal response?
Common property ownership most likely leads to
A) an efficient allocation of resources. B) production at a rate at which price is less than social cost. C) more social justice. D) an increase of externalities.
Which of the following holds that economic decision making on all levels is unbiased and is based on all available information?
A. rational expectations based theory B. bounded rationality theory C. Keynesian cycle theory D. adaptive expectations based theory
Refer to Scenario 6.1. Suppose the friends are forced by government to combine their businesses and share what they make
With this revision to the scenario, if both Tasha and Gloria play their dominant strategies, Tasha's net payoff will be ________ and Gloria's net payoff will be ________. A) $15; $12 B) $15; $15 C) $30; $30 D) $12; $12