If monopolistic competitors are making a profit in the short run, in the long run _____________ and squeeze out profits.
Fill in the blank(s) with the appropriate word(s).
more firms enter the industry
You might also like to view...
Offshoring by domestic firms causes job losses not job expansion in the home market
Indicate whether the statement is true or false
The infant industry argument is that
A) comparative advantage is irrelevant to economic growth. B) developing countries have a comparative advantage in agricultural goods. C) developing countries have a comparative advantage in manufacturing. D) developing countries have a potential comparative advantage in manufacturing. E) developing countries have no chance to compete with industrialized countries.
If potential GDP for the first quarter of 2013 = $75.8 billion, and real GDP for the first quarter of 2013 = $80.3 billion, then the output gap was
A) -5.9%. B) -5.6%. C) 5.6%. D) 5.9%.
Giving up consumption today for consumption tomorrow accelerates economic growth by
A) having the economy produce no consumer goods. B) increasing saving out of disposable income. C) increasing the expected rate of inflation. D) rapid expansion of the money supply.