When firms exit a monopolistically competitive industry:
a. the average total cost curves of remaining firms will shift upward
b. the demand curves of remaining firms are increased at each level of output.
c. the remaining firms will decrease production.
d. the average revenue received by remaining firms will decrease at each level of output.
b
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
The increase of the real money supply by 10% by the Federal Reserve when the unemployment rate rises by 1% is an example of
A) the conduct of procyclical monetary policy. B) the utilization of feedback policy rule. C) the utilization of rigid policy rule. D) the conduct of nondiscretionary fiscal policy.
The Coase Theorem implies that when there are no costs to trading, _____
a. resources will move to their most valued uses, depending upon who gets the initial property rights b. resources will move to their most valued uses, regardless of who gets the initial property rights c. resources might be misallocated, depending upon the who gets the initial property rights d. resources might be misallocated, regardless of who gets the initial property rights
When David Palmisano won the Powerball, he could choose between getting annual installments or taking a lump sum. An economist suggested that David think about
a. marginal product b. the present value of an income stream c. marginal disutility d. the present value of a payment only one year hence e. the demand for labor