As competitors enter a monopolistically competitive industry, the incumbent firms demand curves shift
a. To the left and become less elastic
b. To the right and becomes less elastic
c. To the left and becomes more elastic
d. To the right and becomes more elastic
c
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Hotspur Incorporated, a manufacturer of microwaves, is a price taker in both the input and output markets. To maximize its profit, Hotspur will hire labor up to the point where
A) the marginal revenue product of labor equals the wage rate. B) the marginal revenue product of labor equals the output price. C) the marginal product of labor is no longer positive. D) all economies of scale have been exhausted.
If a small country imposes a tariff, then
A) the producers must suffer a loss. B) the consumers must suffer a loss. C) the government revenue must suffer a loss. D) the demand curve must shift to the left. E) the world price on that item will shift.
Everything else held constant, in the market for reserves, when the federal funds rate equals the interest rate paid on excess reserves, raising the interest rate paid on excess reserves
A) increases the federal funds rate. B) lowers the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect of the federal funds rate.
Which of the following statements is false?
A) As a result of a quota, consumers' surplus falls. B) As a result of a tariff, producers' surplus rises. C) As a result of a tariff, consumers' surplus falls. D) As a result of a quota, producers' surplus rises. E) none of the above