The entry of firms into a market, ceteris paribus,
A. Shifts the market demand curve to the left.
B. Decreases the equilibrium output in the market.
C. Reduces the economic profit of each firm already in the market.
D. Shifts the market supply curve to the left.
Answer: C
You might also like to view...
Using the Keynesian model, the effect of a decrease in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the short run
A) a decrease; a decrease B) a decrease; no change C) an increase; an increase D) no change; a decrease
Economic policies often have effects that their architects did not intend or anticipate
a. True b. False Indicate whether the statement is true or false
An oligopolistic firm finds that marginal revenue can range from $10 to $25 at an output level of 2500 units. This information would suggest that the oligopolistic model for this industry is most likely one of:
A. kinked demand. B. price leadership. C. cost-plus pricing. D. collusive pricing.
Fiscal policy is enacted through changes in:
A. taxation and government spending. B. interest rates. C. unemployment and inflation. D. the supply of money.