Which of the following would most likely be the result if the government imposed regulations on monopolistically competitive firms?
a. The firms would take a loss.
b. The firms would increase their profits.
c. More firms would enter the market.
d. More firms would expand production.
a. The firms would take a loss.
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If policymakers in an open economy want to increase the wealth of their citizens, should they seek to increase saving, or to increase investment? Explain
What will be an ideal response?
Sonia opened a yoga studio where she teaches classes and sells yoga clothing. Variable costs for Sonia's yoga studio include the cost of the (i) tank tops. (ii) wages paid to the other yoga instructors. (iii) lease on the studio space. (iv) insurance that the landlord requires Sonia to carry for the studio
a. (i) only b. (i) and (ii) only c. (iii) and (iv) only d. (i), (ii), (iii), and (iv)
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country A could potentially make would be:
A. (500 iPods, 500 tablets). B. (500 iPods, 200 tablets). C. (500 iPods, 300 tablets). D. (500 iPods, 400 tablets).
If 40,000 worker-hours produced a total output of $600,000 in an economy, then the labor productivity is:
A. $10/worker-hour B. $15/worker-hour C. $24/worker-hour D. $240/worker-hour