Entry into a monopolistically competitive industry is
a. easy, but exiting is difficult
b. difficult, but exiting is easy
c. difficult, but not impossible
d. impossible
e. easier than entry into oligopoly
E
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What will be an ideal response?
What type of relationship exists between expected future income and consumption?
A. Negative B. Positive C. Indirect D. Constant
If a perfectly competitive industry is taken over by a monopolist,
a. output will always rise b. output will always fall c. market price will probably not change d. marginal cost will approach average variable cost in the long run e. market price could fall if there are large gains from technological changes under monopoly
If U.S. citizens decide to save a larger fraction of their incomes, the real interest rate
a. decreases, the real exchange rate of the dollar depreciates, and U.S. net capital outflow increases. b. decreases, the real exchange rate of the dollar appreciates, and U.S. net capital outflow decreases. c. increases, the real exchange rate of the dollar appreciates, and U.S. net capital outflow decreases. d. increases, the real exchange rate of the dollar depreciates, and U.S. net capital outflow increases.