In a monopolistically competitive industry, the firms are currently making an economic profit. When this market moves to its long-run equilibrium, the firms' demand curves will have ________ and their economic profit will have ________
A) shifted leftward; decreased to zero
B) shifted leftward; decreased but remain greater than zero
C) shifted rightward; decreased to zero
D) remained the same; decreased to zero
A
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In economics, the term "free market" refers to a market where products are traded but not sold
Indicate whether the statement is true or false
If managers do not choose to maximize profit, but pursue some other goal such as revenue maximization or growth,
A) they are more likely to become takeover targets of profit-maximizing firms. B) they are less likely to be replaced by stockholders. C) they are less likely to be replaced by the board of directors. D) they are more likely to have higher profit than if they had pursued that policy explicitly. E) their companies are more likely to survive in the long run.
Which of the following would indicate the beginning of a recessionary phase in an economy?
a. Many new firms starting up b. Stock prices improving c. Businesses slowing down d. Demand for real estate picking up e. Orders for new equipment increasing
If the slope of a person's utility function for different money prizes is linear, the person
A. is risk averse. B. is indifferent to risk. C. is a risk lover. D. We can't really say