In the long run, monopolistically competitive firms will not earn economic profits because
A) average total cost will shift up to meet the demand curve.
B) input prices will be bid up.
C) production will not be at minimum average cost.
D) new firms will enter the industry.
D
You might also like to view...
How is happiness related to development?
What will be an ideal response?
Assume the market is in equilibrium in the graph shown at demand D and supply S2 (at a quantity of 6). If the supply curve shifts to S1, and a new equilibrium is reached (at a quantity of 4), which of the following is true?
A. Total surplus would increase by $7.50.
B. Total surplus would decrease by $16.50.
C. Total surplus would increase by $32.
D. Total surplus would decrease by $14.00.
Sasha has a master's degree in writing, and currently works full-time as a 2nd grade classroom helper. She submits articles for the local paper on occasion, and gets paid only when the editor agrees to publish a submission. Sasha would love to be a full-time reporter. The best way to describe Sasha is to say she is ________________; the Bureau of Labor Statistics would count Sasha as ____________.
A. underemployed; employed B. employed; employed C. discouraged; underemployed D. underemployed; underemployed
If one state is suffering from acid rain as a result of sulfur dioxide emissions from the industries in a neighboring state, then:
A. state courts can provide adequate remedies. B. the problem is best addressed through federal regulation. C. the individual states can easily reach a solution to the problem. D. the acid rain ceases to be an externality.