If a monopolistically competitive firm is making profits
A. it can be assured of high profits for all time to come.
B. the entrance of new firms decreases the demand facing the firm, thereby reducing profits.
C. the entrance of new firms increases the demand facing the firm, thereby reducing profits.
D. the entrance of new firms increases costs, thereby reducing profits.
B. the entrance of new firms decreases the demand facing the firm, thereby reducing profits.
You might also like to view...
Which of the following is a long-run adjustment?
a. A new economics professor is hired on campus. b. General Motors increases its orders for steel. c. Microsoft cuts back its hiring of new graduates. d. Glow Electric disassembles one of its nuclear power plants. e. Texaco buys more crude oil to refine into gasoline.
If workers become more productive as a result of a new technology, the demand for these workers will decrease because the firm will not need to hire as many
Indicate whether the statement is true or false
Which of the following companies would gain from foreign currency depreciation?
A. Companies that borrow in foreign currency. B. Companies that export goods and services. C. Companies that invest in the foreign equity markets. D. Companies that buy bonds issued by the foreign government.
Refer to the above figure. Profits for this firm are
A. negative. B. zero. C. positive. D. undetermined without more information.