Exhibit 10-1 A monopolistic competitive firm
If all firms in the industry are the same as the monopolistic competitive firm shown in this Exhibit 10-1, firms in the long run will:
A. leave the industry.
B. earn positive economic profits.
C. experience less competition because firms will exit the industry.
D. experience competition from new firms that enter the industry.
Answer: D
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Harmonization of standards refers to
A) the elimination of tariffs and quotas by trading partners. B) common product safety, environment, labor, and fair competition standards agreed upon by trading partners. C) the acceptance or keeping of a trading partner's standards as valid and sufficient by another trading partner. D) separate standards held by different trading partners which other partners refuse to recognize. E) All of the above.
The Phillips curve indicates that when the labor market is ________, production costs will ________ and aggregate supply decreases
A) easy; rise B) easy; fall C) tight; fall D) tight; rise
When an economy experiences significant economic growth:
a. a negative relationship exists between output per capita and adult literacy rates. b. an indirect relationship exists between output per capita and adult literacy rates. c. a direct relationship exists between output per capita and adult literacy rates d. no observed relationship exists between output per capita and adult literacy rates.
The price system is based on the law of __________________.
Fill in the blank(s) with the appropriate word(s).