When entry occurs in a monopolistically competitive industry, which of the following will likely occur?
a. Marginal costs to society will exceed the price people are willing to pay.
b. Price will be equal to the marginal revenue gained by society.
c. The marginal revenue curve will shift to the left.
d. A smaller quantity will be demanded at any given price.
d. A smaller quantity will be demanded at any given price.
When entry occurs in a monopolistically competitive industry, a smaller quantity will be demanded at any given price.
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When the actual exceeds the natural unemployment rate, this means that we have ________ unemployment
A) positive structural B) negative structural C) positive cyclical D) negative cyclical
The Phillips curve traces a set of combinations of rates of:
a. interest and unemployment. b. real GDP and inflation. c. real GDP and interest. d. inflation and interest. e. unemployment and inflation.
Equilibrium tells us nothing about satisfaction or the general state of the economy
Indicate whether the statement is true or false
The DeBeers Company is a profit-maximizing monopolist that exercises monopoly power in the distribution of diamonds. If the company earns positive economic profits this year, the price of diamonds will:
A. exceed both the marginal cost and the average total cost of diamonds. B. be equal to the average total cost of diamonds. C. be equal to the marginal cost of diamonds. D. exceed the marginal cost of diamonds but be equal to the average total cost of diamonds.