As new firms enter a monopolistically competitive industry, the demand for a typical firm's product will most likely:
a. increase and become less elastic.
b. decrease and become more elastic.
c. increase and become more elastic.
d. decrease and become less elastic.
e. remain unaffected.
b
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What is the relationship between wants, factors of production, scarcity, and choices? Discuss the relationship for an individual and for a society
What will be an ideal response?
In an inflationary environment, then over time
A) a specific tariff will tend to raise more revenue than an ad valorem tariff. B) an ad valorem tariff will tend to raise more revenue than a specific tariff. C) an optimum tariff will tend to raise more revenue than an escalating tariff. D) a tariff quota will tend to raise more revenue than a specific tariff. E) an import quota would raise more revenue than a specific tariff.
Suppose that after disposable income increases by $500 billion, consumption expenditures increase by $450 billion. Therefore, the marginal propensity to consume would be
a. 1.11 b. 9.00 c. 0.09 d. 0.90 e. 0.82
Even when faced with a relatively powerful seller, some buyers can still exert bargaining power.
Answer the following statement true (T) or false (F)