If the market demand in a monopolistically competitive industry increases, a likely result in the long run will be
A) less elastic demand curves facing each firm.
B) a higher ratio of price to average cost.
C) a larger number of firms producing a similar product.
D) a transition from monopolistic competition to oligopoly.
C
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The consumption function shifted upward from 1960 to 2013 because as economic growth brought ________ expected future income and ________ wealth, people chose to ________ their consumption expenditure from a given level of income
A) higher; greater; decrease B) lower; greater; increase C) higher; less; increase D) higher; greater; increase E) higher; less; decrease
In the Harrod-Domar growth model, if 12.5% of income is saved, the incremental capital output ratio is 2.5 and the rate of depreciation is 4%, what is the implied rate of growth?
What will be an ideal response?
The Bureau of Labor Statistics counts underemployed persons as those who are currently working:
A. in a job for which they are overqualified for. B. in a field that doesn't add a lot to overall GDP. C. less hours than their employer requires full-time workers to work. D. less than they would like to be.
A fall in the price of farm land and farm prices in the early 1980s caused
a. farmers to borrow more heavily on that land to plant crops b. banks that had lent heavily to farmers to go bankrupt when the farmers were unable to repay their loans c. banks that had lent heavily to farmers to earn extraordinary profit when farmers repaid loans faster than usual d. banks to increase their loans to farmers until the price of farm land increased e. banks and farmers to get together to renegotiate their loans until the price of land and goods increased