As new firms enter a monopolistic competitive industry, it can be expected that:
a. market price will increase.
b. the output of existing firms will increase.
c. profits of existing firms will increase.
d. market demand should decrease.
e. profits of existing firms will decrease.
e
You might also like to view...
When one company is owned by a corporation but is chartered separately from the parent company, this is
A. a subsidiary. B. a clone. C. used for tax evasion. D. illegal.
Which investment bank filed for bankruptcy on September 15, 2008 making it the largest bankruptcy filing in U.S. history?
A) Lehman Brothers B) Merrill Lynch C) Bear Stearns D) Goldman Sachs
Land includes all of the following except
a. a virgin forest b. natural-state real estate c. oil under the oceans d. deposits of copper e. an irrigation system
When the Fed wishes to increase the reserves of the member banks, it
A. Raises the discount rate. B. Sells securities. C. Buys securities. D. Raises the reserve requirement.