Freedom of entry and exit in monopolistic competition
A) means that firms' price and average total cost of producing are always equal.
B) never allows firms to earn economic profits.
C) leads to falling prices when new firms enter the market.
D) forces firms to abandon product differentiation but only in the long run.
C
You might also like to view...
Which of the following statements is FALSE?
A) saving = disposable income - consumption B) consumption + saving = disposable income C) consumption = saving - disposable income D) disposable income - saving = consumption
Excess supply in an unregulated market will cause the price of a product to fall
Indicate whether the statement is true or false
If there is a decrease in foreign demand for U.S. goods due to a recession in Europe
A) the U.S. aggregate demand will shift right. B) the U.S. aggregate demand will shift left. C) the U.S. aggregate demand will not be affected. D) the U.S. aggregate demand will become steeper.
If demand is elastic, an increase in price will decrease total revenue
a. True b. False Indicate whether the statement is true or false