In the long run, the economic profits of Hoot's Chicken 'n' Ribs, a monopolistic competitor, are:
A. not eliminated, because competition is not perfect.
B. not eliminated, because the demand curve slopes downward.
C. eliminated due to firms entering the industry.
D. eliminated due to firms leaving the industry.
Answer: C
You might also like to view...
The aggregate demand curve shows that, if other factors are held constant
A) higher price levels will result in higher total planned spending. B) higher price levels will result in lower total planned spending. C) lower price levels will result in inflationary conditions. D) higher price levels will result in lower interest rates.
What will happen to the equilibrium quantity and price of salmon in a competitive market when there is an equal decrease in demand and supply?
A. Equilibrium quantity and price will both increase B. Equilibrium quantity and price will both decrease C. Equilibrium quantity will decrease and equilibrium price will stay the same D. Equilibrium quantity will stay the same and equilibrium price will increase
The IS curve
A. is vertical. B. slopes downward. C. is horizontal. D. slopes upward.
It is generally true that massive increases in the minimum wage help workers that keep their jobs more than it hurts workers that lose their jobs.
Answer the following statement true (T) or false (F)