If some firms leave a monopolistically competitive market, the
a. remaining firms will charge a lower price to try to capture the released market share
b. remaining firms' cost curves will shift upward and to the right
c. remaining firms' demand curves will shift to the left
d. market demand curve shifts to the right
e. remaining firms will produce at a different point on their ATC curves
E
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Moral hazard and adverse selection are the result of ________
A) prudential supervision B) any and all government policy C) excessive price fluctuations D) asymmetries of information
If the minimum efficient scale in toaster production is 500,000 units per year, the average cost of producing 300,000 toasters is greater than the average cost of producing 500,000
a. True b. False
An unanticipated decline in the demand for legal services will
a. increase both the wages of lawyers and the rate of return they can expect to derive from their legal education. b. lead to a shortage in the market for legal services. c. reduce the wages of lawyers but not the quantity of legal services supplied. d. reduce the wages of lawyers and the rate of return on a legal education..
The investment demand curve will shift to the right as a result of a(n):
a. Decrease in the acquisition and maintenance cost of capital goods b. Increase in the excess productive capacity available in the industry c. Increase in taxes businesses pay to government d. Decrease in the confidence of business leaders about the economy