A monopolistically competitive firm that earns economic profits in the short run will be able to expand its market share even if the market size remains constant
Indicate whether the statement is true or false
FALSE
You might also like to view...
From the table above, which gives data about the U.S. labor market in 1933, the labor force participation rate is
A) 12 percent. B) 48 percent. C) 60 percent. D) 95 percent. E) 65 percent.
An upward shift in the consumption function, other things being equal, could be caused by households:
a. becoming optimistic about the state of the economy. b. becoming pessimistic about the state of the economy. c. expecting future income and wealth to decline. d. None of these.
Contractionary monetary policy on the part of the Fed results in
A) an increase in the money supply, an increase in interest rates, and an increase in GDP. B) a decrease in the money supply, an increase in interest rates, and a decrease in GDP. C) an increase in the money supply, a decrease in interest rates, and an increase in GDP. D) a decrease in the money supply, a decrease in interest rates, and a decrease in GDP.
An increase in supply will always
A. decrease consumer surplus. B. increase producer surplus. C. decrease producer surplus. D. increase consumer surplus.