In the above figure, what would happen to the monopolistically competitive industry in the long run?
A. More producers would exit the market, and the share of the market to this firm would fall, which would cause the demand curve to shift leftward until there is zero economic profit.
B. More producers would enter the market, and the share of the market to this firm would fall, which would cause the demand curve to shift leftward until there is negative economic profit.
C. More producers would enter the market, and the share of the market to this firm would fall, which would cause the demand curve to shift leftward until there is zero economic profit.
D. More producers would enter the market, and the share of the market to this firm would rise, which would cause the demand curve to shift rightward until there is zero economic profit.
Answer: C
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If self-correction causes prices to fall less than nominal wages, both output and real wages will decrease
a. True b. False Indicate whether the statement is true or false
Differentiate between the short run and the long run
The answer is: "The difference between the price buyers pay for a good and the maximum or highest price they would have paid for the good." This is the definition for
A) taxes. B) producers' surplus. C) consumers' surplus. D) the sum of producers' and consumers' surpluses. E) the welfare triangle.
Branding:
A. promises the differences in products are completely perceived and not real. B. can be a barrier to entry. C. guarantees high-quality products. D. All of these statements are true.