If short-run economic profits are greater than zero for firms in a monopolistically competitive market, in the long run we expect:
A. entry barriers to prevent competing firms from entering this market.
B. the demand curve for firms in the market to shift to the right.
C. the average cost of production to decrease.
D. the average cost of production to increase.
Answer: D
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A) 0 cows B) 1 ton of potatoes C) 80 cows D) 400 cows E) 100 cows
Which of the following conditions would definitely cause a perfectly competitive company to shut down in the short run?
A) P < MC B) P = MC < AC C) P < AVC D) P = MR
The Federal Reserve System is divided into how many districts?
A. 7 B. 5 C. 1 D. 12
If total utility is decreasing, then
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