Consider a monopolistic competitor who earns high profits in the short run. Which of the following changes will be observed in the demand curve faced by this firm in the long run?
a. The demand curve will become vertical.
b. The demand curve will become steeper.
c. The demand curve will become flatter.
d. The demand curve will slope upward.
b
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If the marginal profit of the next unit is negative, the firm should produce more output in order to generate greater profit.
Answer the following statement true (T) or false (F)
If actual output exceeds potential output, the short-run aggregate supply curve shifts downward over time
Indicate whether the statement is true or false
The most efficient point on the production possibilities curve is the midpoint on the curve
a. True b. False Indicate whether the statement is true or false
Mutual funds, pension plans, and life insurance policies:
A. are all forms of savings. B. differ regarding when you can have access to the asset's worth. C. all entrust a professional to decide which financial assets are the best for the saver to hold. D. All of these are true.