What is likely to happen if many new businesses enter a market?
Industry profits will increase
Industry capacity will fall
Competitive rivalry will intensify
Barriers to entry will rise
Competitive rivalry will intensify
You might also like to view...
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for potatoes and that steak and potatoes are complements. What panel describes what happens in this market when the price of steak rises?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
How is economic growth shown by the production possibilities curve?
A) by shifting the curve to the right B) by moving the curve to the left C) by moving up the existing curve D) by changing the shape of the curve from a straight line to one that is bowed
Suppose output is $1000 billion, government purchases are $200 billion, desired consumption is $700 billion, and desired investment is $150 billion. Net foreign lending would be equal to
A. $50 billion. B. $150 billion. C. -$50 billion. D. -$150 billion.
An exchange-rate system in which the nominal exchange rate is set by the government is known as
A. an exchange-rate union. B. a floating exchange-rate system. C. a fixed exchange-rate system. D. a flexible exchange-rate system.