The entry of an additional firm into a market shifts the demand curve for the original firm to the left.
Answer the following statement true (T) or false (F)
True
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The average total cost curve of a natural monopoly is always
a. upward sloping. b. horizontal. c. downward sloping at all points. d. downward sloping where it crosses the market demand curve for the good.
Which of the following rises when the U.S. price level falls?
a. interest rates b. the value of the dollar in the market for foreign-currency exchange c. real wealth d. All of the above are correct.
Suppose the demand function is given by Qxd = 8Px-0.5 Py0.25 M0.12 H. Then the cross-price elasticity between goods x and y is:
A. 8.33. B. 0.50. C. 4.00. D. 0.25.
If the (steadily decreasing) marginal benefit of another day spent in the hospital is smaller than the (steadily increasing) marginal cost of an additional day spent in the hospital, the
A. net benefit from the hospital stay is maximized. B. net benefit from the hospital stay must be negative. C. net benefit from the hospital stay must be increasing. D. net benefit from the hospital stay must be decreasing.