In the long run, if some monopolistically competitive firms are earning economic losses then

A) firms will leave the industry.
B) raise prices until they earn economic profits.
C) they will increase production until marginal costs fall.
D) new firms will enter the industry.


Answer: A

Economics

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In the above figure, the economy is initially at point B. If the Fed decreases the quantity of money, there is

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If an upstream monopoly and a downstream monopoly vertically integrate into a profit-maximizing monopoly, then the total amount of deadweight loss in the industry

A) will increase. B) will decrease. C) will remain unchanged. D) cannot be determined.

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Producer surplus is the

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Economics