If a typical monopolistically competitive firm is incurring short-run losses, then
A) other more competitive firms will enter the market.
B) as some firms leave, the remaining firms will experience an increase in the demand for their products.
C) as some firms leave, the demand for the products of the remaining firms will become more elastic.
D) the industry will eventually cease to exist.
Answer: B
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The voting paradox suggests that the "voting market," as represented by elections
A) leads to a superior outcome in representing consumer preferences compared to the private market for goods and services. B) is no different from the private market for goods and services in terms of representing consumer preferences. C) may not lead to an efficient outcome but certainly leads to a more equitable outcome in terms of distributing goods and services. D) may often lead to an inefficient outcome in representing consumer preferences compared to the private market for goods and services.
During recessions, economics majors earn about 35 percent more than the typical college graduate
Indicate whether the statement is true or false
Banks can continue to make loans until their
A) actual reserves equal their excess reserves. B) excess reserves equal their required reserves. C) actual reserves equal their required reserves. D) actual reserves equal their checking account balances.
If a firm increases its production every month, then its:
a. average fixed cost increases every month. b. average variable cost gets closer to the average total cost every month. c. average variable cost becomes equal to the average total cost. d. average fixed cost gets closer to the average total cost every month.