Industries with high barriers to entry
a. Pushes profits to normal returns
b. increases the likelihood of firms entering the industry
c. help firms sustain profits
d. increases the number of competitors
c
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________ is the value of a good minus the price paid for it summed over the quantity bought
A) Producer surplus B) Consumer surplus C) Surplus D) Shortage
Refer to the above figure. A long-run equilibrium in monopolistic competition is pictured by
A) Panel A. B) Panel B. C) Panel C. D) Panel D.
The theory of monopolistic competition predicts that in long-run equilibrium a monopolistically competitive firm will:
a. produce the output level at which price equals long-run marginal cost. b. operate at minimum long-run average cost. c. overutilize its insufficient capacity. d. produce the output level at which price equals long-run average cost.
When interest rates in the U.S. decrease, we can expect NCO to:
A. decrease, because capital inflow is increasing. B. increase, because capital inflow is decreasing. C. decrease, because capital inflow is decreasing. D. increase, because capital inflow is increasing.