If a monopolistically competitive industry is earning short-run profits, new competitors will enter the industry in the long run and compete away those profits.
Answer the following statement true (T) or false (F)
True
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Since Ditto can always be expected to choose the same activity as Dot in the copycat game
a. any move by Dot to escape from Ditto would not be a Pareto improvement. b. any move by Dot to escape from Ditto would be a Pareto improvement. c. Ditto's choice to follow Dot is a Pareto improvement over going by himself. d. Ditto's choice to follow Dot would be a Pareto improvement over playing by himself so long as Dot does not move.
Consumers always prefer indifference curves that are ____ the origin
a. closer to b. tangent to c. farther from d. concave relative to
A foreign exchange intervention by a central bank affects the value of a country's currency if it:
A. results in a fixed exchange rate. B. leaves domestic interest rates unchanged. C. alters banking system reserves and it changes domestic interest rates. D. alters banking system reserves.
One tax system is less efficient than another if it
a. places a lower tax burden on lower-income families than on higher-income families. b. places a higher tax burden on lower-income families than on higher-income families. c. raises the same amount of revenue at a higher cost to taxpayers. d. raises less revenue at a lower cost to taxpayers.