As firms exit a monopolistically competitive market, profits of existing firms ____ and product diversity in the market ____
a. decline; decreases
b. rise; decreases
c. rise; increases
d. decline; increases
b
You might also like to view...
Under a dirty float, the value of a country's currency is ________
A) fixed B) determined by the relevant currency board C) influenced by the monetary authorities D) unmanageable
The MR curve of a monopolist is
A) downward sloping and below the demand curve. B) downsloping and identical to the demand curve. C) downsloping and above the demand curve. D) horizontal and same as the market demand curve.
If taxes are a lump sum amount, then the AE function is
A. vertical. B. downward sloping. C. flatter than if taxes are a function of income. D. steeper than if taxes are a function of income.
Health Care is not like other goods and services because
A. people go to the doctor to find out what is wrong, whereas they get other services knowing more about what they need. B. there is no motive to consume more than is economically efficient. C. people do not have to pay for it. D. we tend to like to go to the doctor and do it for enjoyment, whereas we hate going to the dentist.