Suppose that a monopoly is earning economic profits in the short run. As a result,
a. no new firms will enter the industry because of barriers to entry
b. the monopolist will increase its price and lower its output
c. the market supply curve will shift to the right
d. profits will fall as new firms enter the market
e. the market demand curve will shift to the left
A
You might also like to view...
In 1920 a constitutional amendment was passed that outlawed the production, sale, purchase, and consumption of alcoholic beverages. "Prohibition" encouraged bootlegging and black markets for whiskey, wine, and beer
The amendment was eventually repealed in 1933. In 1920, what alternative economic policy was available to the government as a means of reducing alcohol consumption nationwide?
Refer to Table 19-11. Nominal GDP for Tyrovia in 2016 equals
A) $1,140. B) $880. C) $690. D) $560.
Monopolistic competition is the only market structure that features many sellers
a. True b. False Indicate whether the statement is true or false
In the long run, 
A. the total revenue curve will change its slope. B. the firm will operate at point C. C. the firm will operate at point B. D. the firm will operate at point D.