If firms in a monopolistically competitive industry are making an economic profit, then definitely there is
A) a leftward shift in each firm's demand curve as new firms enter the market.
B) a rightward shift in each firm's marginal revenue curve as new firms enter the market.
C) an upward shift in each firm's cost curves as new firms enter the market.
D) All of the above answers are correct.
A
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Consider an indifference curve drawn for movies and pizzas. Which of the following statements about this indifference curve is false?
A) As an individual consumes more pizzas, the amount of movies the consumer is willing to give up for an additional pizza increases. B) If the individual consumes more pizzas, the amount of movies consumed must fall if the consumer is to stay on the same indifference curve. C) The indifference curve will be convex to the origin, that is, bowed in toward the origin. D) If the consumer purchases more of movies and pizzas, total utility will increase, but the consumer will be on a new indifference curve that is farther from the origin than the original indifference curve.
If consumption is $6 billion, investment is $3 billion, government purchases are $1 billion, and GDP is $12 billion, then net exports must equal:
A. $22 billion. B. $10 billion. C. $2 billion. D. $12 billion.
A positive real interest rate indicates
a. how fast the number of dollars in your savings account is rising over time. b. how fast the purchasing power of your savings account is rising over time. c. the number of dollars in your savings account today. d. the purchasing power of your savings account today.
Equilibrium price is _____ and equilibrium quantity is _____ units.
A. $8; 9
B. $7; 10
C. $6; 10
D. $5; 9