The entry of new firms into a monopolistic competitive industry will shift the:
a. market demand curve to the right.
b. market demand curve to the left.
c. existing firm's demand curve to the right.
d. existing firm's demand curve to the left.
e. market supply curve to the left.
d
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Refer to the graph shown depicting a monopolistically competitive firm. The demand curve is represented by curve:
A. A. B. B. C. C. D. D.
When a production possibilities frontier is bowed outward, as more of one good is produced, its opportunity cost
A) increases. B) decreases. C) remains constant. D) might increase, decrease, or remain constant depending on how much people value the additional units of the good. E) cannot be predicted.
The concept of twin deficits refers to ________
A) the phenomenon of simultaneous trade and government budget deficits B) the phenomenon of simultaneous government and private budget deficits C) the phenomenon of simultaneous state and federal budget deficits D) all of the above E) none of the above
Refer to the graph shown. If hamburgers are produced by a pure monopoly that maximizes profit, the monopoly firm will:
A. earn $200 economic profit per day. B. earn $100 per day. C. go out of business. D. just cover its opportunity cost.