If a monopolistically competitive firm raises its price,
a. quantity demanded falls to zero
b. quantity demanded declines, but not to zero
c. the market supply curve shifts outward
d. the market supply curve shifts inward
e. quantity demanded remains constant
B
You might also like to view...
The graph shown best represents:
A. a binding price ceiling.
B. a binding price floor.
C. a missing market.
D. a market for an inferior good.
The _____________ program of President Lyndon Johnson was designed to lift people out of poverty.
Fill in the blank(s) with the appropriate word(s).
In monopolistic competition, a firm's demand curve is tangent to the ATC curve in the long run because
A. Entry eliminates economic profit, and exit eliminates losses. B. Barriers to entry are high. C. Advertising is ineffective in differentiating the product. D. Producers are price takers.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease