If firms in a monopolistically competitive industry experience short-run losses
A) some firms would like to exit the industry but find they cannot.
B) firms increase prices further, until they make at least a normal return.
C) firms increase advertising spending to increase demand, until they make at least a normal return.
D) some firms exit the industry, causing the demand curves for the remaining firms to shift to the right until they earn a normal profit.
D
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Asymmetric information represents a market situation in which
A) all parties to a transaction possess less than full information. B) one party in a transaction has more information than the other party. C) some information possessed by the parties in a transaction may be false. D) a zero-sum game exists.
If a consumer wishes to maximize satisfaction given limited income and MUx/Px< MUy/Py then the consumer should:
a. do nothing because she/he is in equilibrium. b. buy more of X and less of Y. c. buy more of Y and less of X. d. buy more of both X and Y. e. buy less of both X and Y.
With economies of scale came
A) larger families. B) simpler business forms. C) the need for management structures beyond what a family could offer. D) fewer economies of scope.
If real GDP for Mexico was 19.8 trillion pesos at the end of 1999 and 21.3 trillion pesos at the end of 2000 . then Mexico's economy grew at an annual rate of _____
a. -0.015% b. 4.4 % c. 4.2% d. 7.57% e. 3.8%