Since firms outside an industry cannot have an incentive to enter the industry in equilibrium, firms inside a monopolistically competitive equilibrium must be making zero profit.
Answer the following statement true (T) or false (F)
False
Rationale: Firms inside the industry have already paid the fixed entry cost -- and it is therefore possible for them to make a positive profit while firms outside the industry would make negative profit by entering.
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Why is the market demand curve for public goods calculated as a vertical summation of individual demand curves?
What will be an ideal response?
Accounting that relates how growth in inputs of production are related to growth in output is called:
A. input to output accounting. B. national income accounting. C. production accounting. D. growth accounting.
The height of the supply curve at a quantity of 100 represents the
a. total value of all 100 units to consumers. b. minimum price required to induce a producer to supply the hundredth unit. c. equilibrium price of the good regardless of the position of the demand curve. d. profit derived by producers from the sale of the hundredth unit.
One way of reducing our trade deficit would be to get Americans to
A. save more and consume more. B. save more and consume less. C. save less and consume less. D. save less and consume more.