These are the cost and revenue curves associated with a monopolistically competitive firm in the short run.
According to the graph shown, in the long run we can expect that
A. price will increase.
B. firms will enter the market.
C. profits will increase.
D. firms will exit the market.
Answer: B
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Which of the following statements is FALSE?
A) The federal budget deficit in 2004 was about 4 percent of the GDP. B) During the past five years, the U.S. public debt has been increasing. C) The public debt of $25 billion is the accumulated debt of all U.S. individuals, firms, and institutions. D) A budget deficit of $25 billion in a given year increases the public debt by $25 billion.
Which of the following is true?
A) Employment and unemployment are both coincident with the business cycle. B) Employment and unemployment are both procyclical. C) Employment is procyclical and unemployment is coincident with the business cycle. D) Employment is procyclical and unemployment is countercyclical.
Excess reserves equal total reserves plus required reserves
a. True b. False Indicate whether the statement is true or false
To protect economic profits
A) a firm should try to acquire a barrier to entry. B) a firm should limit substitutes. C) a firm should have a patent if possible. D) all of these choices.