Figure 8.3 shows demands and costs for a monopolistically competitive firm. When the firm's demand curve shifts from D1 to D2 and to D3:
A. the demand for the firm's product is decreasing.
B. the firm's average cost of production is increasing.
C. the firm's marginal revenue curve also shifts to the left.
D. All of these
Answer: D
You might also like to view...
In international trade, dumping refers to
a. producing a lower quality good for export than what is produced for domestic consumption b. selling an export at a higher price than its price to domestic consumers c. selling an export at a price below its cost of production d. producing a lower quality good for domestic consumption than for export e. paying workers below subsistence wages
According to the Treaty of Maastricht, a euro applicant must have a total outstanding government debt that does not exceed 60% of its GDP.
a. true b. false
If the contribution from capital growth equals 2 percent and the contribution from labor growth equals 4 percent, then GDP ________
A) will grow by 6 percent B) will grow by 8 percent C) will grow by 2 percent D) will change by an unknown percentage
Homeowners with good credit history will usually be
A. wise enough never to borrow any of their home equity for any purpose. B. wise enough to borrow part of their home equity only for sensible goals, like a big new SUV. C. unaware that borrowing part of the equity in their home will increase their monthly payments. D. able to borrow part of the equity in their home to achieve reasonable financial goals.