Which of the following would not occur as a result of a monopolistically competitive firm suffering a short-run economic loss?
A) The firm could exit the industry in the long run.
B) If the firm does not exit the industry in the long run its demand curve will shift to the left.
C) If the firm does not exit the industry in the long run its demand curve will shift to the right.
D) If the firm remains in the industry in the long run it will break even.
Answer: B
You might also like to view...
Output price changes cause substitution effects and scale effects. ?
Answer the following statement true (T) or false (F)
The lawsuit the Justice Department brought against Apple regarding the pricing of e-books for its iPad is an example of attempts by the government
A) to prevent horizontal mergers which would significantly reduce competition. B) to prevent vertical mergers which would significantly reduce competition. C) to regulate a natural monopoly by establishing government-regulated prices. D) to keep firms from artificially restricting competition to raise prices.
Under the U.S. system of regulation, most regulars are selected from
A) politicians and their friends. B) the industry that is to be regulated. C) consumer advocacy groups. D) university professors who understand the nature of the industry and who understand the true interests of consumers.
Refer to the information provided in Table 20.1 below to answer the question(s) that follow. Table 20.1
Refer to Table 20.1. Guatemala has
A. a comparative advantage but not an absolute advantage in banana production. B. an absolute advantage and a comparative advantage in banana production. C. a comparative advantage but not an absolute advantage in orange production. D. an absolute advantage and a comparative advantage in orange production.