The entry of new firms into a market will
a. increase the market demand curve
b. make the existing firms' demand curves more elastic
c. make the market demand curve less elastic
d. shift the firm's demand curve to the right
e. shift the market supply to the right
B
You might also like to view...
If a firm in Thailand borrows dollars from a U.S. bank, its interest payments on the loan in bahts will decrease if the baht appreciates against the dollar
Indicate whether the statement is true or false
With regard to the characteristics of production indifference curves, which of the following statements is/are NOT true? a. Higher curves correspond to larger outputs
b. An indifference curve will generally have a negative slope. c. An indifference curve is typically assumed to curve inward toward the origin near its middle. d. All of the above are true for production indifference curves, but not for isoquants. e. b and c
Factor mobility aids in economic development when
A. There is an increase in both outsourcing and insourcing. B. A technological advance causes some firms to go out of business. C. A region suffers a natural disaster such as an earthquake or tornado. D. All of the choices are correct.
The primary objective of economics is
A) to learn how to create more resources. B) to study how people make choices with limited resources. C) to learn how to make the most profits with a given amount of resources. D) to study why some people are never happy with the resources they have.