In the model of monopolistic competition, if firms have ________ average cost curves, then opening trade will cause ________ firms to ________ the industry
A) different; less efficient; exit
B) different; more efficient; enter
C) symmetric; less efficient; exit
D) symmetric; more efficient; enter
E) symmetric; less efficient; enter
A
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Among a set of alternatives with the same total costs, an individual is said to optimize if she chooses an alternative that has the:
A) highest total benefit. B) highest risk. C) lowest opportunity costs. D) highest net costs.
An individual who has stopped looking for a job because he is convinced that he cannot find a job is referred to as
A) a contingent worker. B) a productive worker. C) a discouraged worker. D) an unemployed worker.
Suppose the central bank of a country announces that interest rates will remain between 1 and 2 percent for the next 2 years. This is an example of:
a. open market operations. b. deficit financing. c. forward guidance. d. quantitative easing.
A local video store estimates its average customer's demand per year is Q = 7 ? 2P, and it knows the marginal cost of each rental is $0.5. What is the annual profit that the video store expects to make on an average customer if it engages in optimal two-part pricing?
A. $7 B. $9 C. $6 D. $8