If a monopolistically competitive firm's demand curve is shifting left, it will stop shifting when:
A. firms are positive but not large economic profit.
B. the firm is earning negative economic profit.
C. the firm is earning zero economic profit.
D. price falls to marginal cost.
B. the firm is earning negative economic profit.
You might also like to view...
If people expect the Fed to adopt a(n) ________ for several years, the long-run real interest rate will remain ________
A) contractionary fiscal policy; high B) expansionary fiscal policy; low C) expansionary monetary policy; low D) contractionary monetary policy; low
The sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) always equals:
a. 1. b. 0. c. the interest rate. d. the marginal propensity to invest (MPI).
If net investment spending in a nation is zero, we can conclude that:
a. gross investment exceeds the capital consumption allowance. b. the capital consumption allowance exceeds gross investment. c. imports equal exports. d. gross investment equals the capital consumption allowance. e. no investment goods were produced in the economy.
National income is the sum of:
a. personal income and personal tax payments. b. proprietors' income, rental income, compensation of employees, corporate profits, and interest receipts, net of indirect business taxes and the capital consumption allowance. c. wages, transfer payments, interest paid to businesses, and tax revenue. d. NNP and the capital consumption allowance. e. consumption, investment, government spending, and net exports.