A monopolistically competitive industry is in the process of moving toward long-run equilibrium. This period the product of a typical firm has more substitutes than last period. This means that
A. there was entry into the industry.
B. a typical firm will produce more this period.
C. a typical firm's profits will fall this period.
D. both a and c
E. all of the above
Answer: D
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The demand for loanable funds curve shows that the higher the real interest rate, the
A) more the loanable funds demand curve shifts leftward. B) smaller the demand for loanable funds. C) smaller the quantity of loanable funds demanded. D) larger the demand for loanable funds. E) larger the quantity of loanable funds demanded.
Assuming a required reserve ratio of 5%, interest rate on reserves of 1%, and interest rate on loans of 6%, what is the effective cost of the reserve requirement on a $10,000 deposit?
A) 0.05% B) 0.25% C) 0.30% D) 1%
The market for toothpaste is a good example of perfect competition.
Answer the following statement true (T) or false (F)
The United States has never suffered through periods of hyperinflation in its history
a. True b. False Indicate whether the statement is true or false