Figure 11.1Profits for the monopolistically competitive firm depicted in Figure 11.1:
A. will increase in the long run.
B. will not change in the long run.
C. will decrease in the long run.
D. are impossible to predict in the long run.
Answer: C
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Feasible options are options:
A) that are available and affordable. B) that are available but not affordable. C) that are affordable but not available. D) that are optimal for an economic agent.
The long-run aggregate supply curve will shift to the right if
A) net exports decrease. B) the economy experiences technological change. C) there is a decrease in population. D) the economy experiences high levels of inflation.
All of the following will affect the position of the demand curve EXCEPT
A) income. B) taste and preference. C) changes in expectations of future relative prices. D) prices of resources used to produce the product.
If the marginal propensity to save (MPS) is 0.1, the multiplier will be
A) 0.1. B) 1. C) 5. D) 10.