Suppose that a monopolistically competitive market is in its long-run equilibrium. If the market demand curve shifts to the right due to changes in consumer preferences:
A. the number of firms in the market will increase in the short run.
B. firms will earn positive economic profits in the short run.
C. firms' average costs of production will increase as they increase output levels in the short run.
D. None of these
Answer: B
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Which of the following is not an option that could be used to save Social Security? a. Decreasing the age required for full-time benefits
b. Implementing means testing c. Allowing individuals to opt out of the Social Security system d. Increasing the return to Social Security funds
Assume the United States and Canada have the same amount of resources. In a given time period, the United States can produce 3 tons of steel or 300 tons of wheat. Canada can produce 4 tons of steel or 400 tons of wheat. This means that
A. The United States has a comparative advantage in steel. B. Canada has an absolute advantage in both steel and wheat. C. Canada has a comparative advantage in steel. D. The United States has an absolute advantage in steel.
Which of the following is a disadvantage of? corporations?
A. Longevity B. Ability to raise capital C. Liquidity D. Reporting requirements E. Limited liability
Gross investment is
A) the wear and tear on private investment. B) the total amount of new private investment purchases. C) what is left over from total new private investment after depreciation. D) the total amount of private investment purchases, whether new or previously existing.