Which of these changes is likely to be witnessed by a monopolistically competitive firm in the long run if it incurs a loss in the short run?
a. The demand curve faced by it will become horizontal.
b. The market price of its product will increase
c. Its average cost of production will decrease.
d. Its marginal cost of production will decrease.
b
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As the U.S. price level rises relative to price levels in other countries, what would happen in the U.S.?
a. consumption and net exports would decline b. consumption and net exports would increase c. consumption would increase and net exports would decrease d. consumption would decrease and net exports would increase e. consumption and net exports would remain constant
The dominant strategy in the advertising dilemma is to advertise even if it reduces industry profits.
Answer the following statement true (T) or false (F)
Using the information in the above table, the value of M2 is
A) $3,600. B) $3,500. C) $5,500. D) $4,500.
In analyzing macroeconomic data during the past year, you have discovered that average labor productivity fell, but total output increased. What was most likely to have caused this?
A) There is nothing unusual in this outcome because this is what normally occurs. B) The capital—output ratio probably rose. C) There was an increase in labor input. D) Unemployment probably increased.