When firms in monopolistic competition incur an economic loss, some firms will
A) enter the industry and produce more products.
B) exit the industry, and demand will increase for the firms that remain.
C) exit the industry, and demand will decrease for the firms that remain.
D) enter the industry, and demand will become more elastic for the original firms.
E) exit the industry and other firms will enter.
B
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In the figure above, ceteris paribus, an increase in x is associated with
A) an increase in y. B) a decrease in y. C) an increase in z. D) a random change in z. E) no change in either y or z.
The above figure shows the marginal private benefit and marginal social cost of a college education. If society's external benefits from college graduates is $10,000 each, then the
A) marginal social cost curve lies $10,000 to the left of the private marginal benefit curve. B) marginal social cost curve lies $10,000 to the right of the private marginal benefit curve. C) marginal social benefit curve lies $10,000 below the private marginal benefit curve. D) marginal social benefit curve lies $10,000 above the private marginal benefit curve.
Mass adoption of technology, like the steam engine, was not influenced greatly by the relative benefits and costs of the new technology compared to existing technology
Indicate whether the statement is true or false
Which of the following explains why people eventually stop eating any one item at an all-you-can-eat buffet?
a. the income effect b. the law of demand c. the law of diminishing marginal utility d. the substitution effect