Suppose a monopolistically competitive industry evolved into a perfectly competitive industry. Which of the following statements is correct?
A) The industry would produce more output and charge a lower price after the change.
B) The industry would produce at decreasing returns to scale.
C) Elasticity of demand for the firm's product would remain the same after this change occurred.
D) This industry would produce the same level of output at lower prices in the long run than before the change.
A
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In the prisoners' dilemma game with Bonnie and Clyde as the players, the likely outcome is
a. a very good outcome for both players. b. a very good outcome for Bonnie, but a bad outcome for Clyde. c. a very good outcome for Clyde, but a bad outcome for Bonnie. d. a bad outcome for both players.
If the interest rate is above the Fed's target, the Fed should
a. buy bonds to increase bank reserves. b. buy bonds to decrease bank reserves. c. sell bonds to increase bank reserves. d. sell bonds to decrease bank reserves.
According to the rule of 72, a 12% annual increase in real GDP would lead to a doubling of real GDP in 8 years.
a. true b. false
Total utility describes
A) the benefit gained from all consumption. B) an increase in consumption multiplied by the gain in utility. C) total consumption multiplied by marginal utility. D) total consumption divided by marginal utility.