Suppose that monopolistically competitive firms in a certain market are experiencing losses. In the transition from this initial situation to a long-run equilibrium,
a. the number of firms in the market decreases.
b. each existing firm experiences a decrease in demand for its product.
c. each firm experiences an upward shift of its marginal cost and average total cost curves.
d. each existing firm's average total cost falls to bring economic profit back to zero.
a
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Prior to the financial crisis and recession which began in 2007, credit for mortgages was ________, creating a ________
A) unavailable to low-income borrowers; large demand for rental properties B) virtually unavailable; housing bubble C) only available to borrowers with high credit scores; shortage of affordable housing D) easily obtained; housing boom
Expected utility is the utility that arises from expected wealth
Indicate whether the statement is true or false
List three primary ways in which profits above “normal” levels can be earned.
What will be an ideal response?
All of the following will cause a shift in the supply of wireless earbuds EXCEPT
A. an increase in the cost of producing wireless earbuds. B. a per-unit government subsidy on the production of wireless earbuds. C. a decrease in the number of wireless earbuds manufacturers. D. a decrease in the prices of wireless earbuds.