As entry of new firms occurs in an existing monopolistically competitive industry, the

a. market demand curve will shift to the right
b. market demand curve will shift to the left
c. demand curves of existing firms shift to the right
d. demand curves of existing firms will become more price elastic
e. market supply curve will shift to the left


D

Economics

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Angelica wants to open a restaurant and is thinking of setting it up as a corporation. What are the advantages and disadvantages she will face by setting up the business as a corporation as opposed to a sole proprietorship or a partnership?

What will be an ideal response?

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Individuals will only pursue an activity if: a. E(MB) E(MC)

b. E(MB) = E(MC). c. E(MB) > E(MC). d. E(MB) < E(MC).

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In practice, monopolistically competitive markets are:

A. very rare. B. virtually nonexistent. C. the only type of market that truly exists. D. very common.

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World Trade Organization rules allow a government to take actions to control environmental damage caused by its own firms' production.

Answer the following statement true (T) or false (F)

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