As new firms enter a monopolistically competitive market, profits of existing firms
a. rise, and product diversity in the market increases.
b. rise, and product diversity in the market decreases.
c. decline, and product diversity in the market increases.
d. decline, and product diversity in the market decreases.
c
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What is frictional unemployment?
What will be an ideal response?
The field of political economy:
A. examines the economic consequences of free markets. B. examines the economic consequences of public sector decision making. C. examines the economic consequences of private sector decision making. D. examines the labor market.
The ratio of the liabilities of a financial institution to equity capital is called
A) leverage. B) assets. C) liabilities. D) equity.
In a relationship among total, average and marginal products, where TP is maximized:
a. AP is maximized b. AP is equal to zero c. MP is maximized d. MP is equal to zero e. none of the above