When firms exit a monopolistically competitive industry:
a. the average total cost curves of remaining firms will shift upward
b. the demand curves of remaining firms are decreased at each level of output.
c. the remaining firms will decrease production.
d. the average revenue received by remaining firms will increase at each level of output.
d
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An economy experiences economic growth whenever
A. Long-run real GDP rises. B. The unemployment rate falls. C. Nominal GDP rises. D. Base-year GDP rises.
Which one of the following is not a danger of experimenting with pricing for an oligopoly?
A. Firms matching price reductions. B. The uncertainty of competitor response. C. Product differentiation. D. Retaliation.
In Graph C, if P1 moved to P2 which of the following would most likely happen?
a. The price of leather would decrease.
b. The price of leather would decrease, but the quantity of leather would increase.
c. The price of leather would increase, but the quantity of leather would decrease.
d. The quantity of leather would increase.
Assume a good has a downward-sloping, linear demand curve. Starting at a price of zero, as the price of the good increases, total revenue
A. Is constant. B. Increases, then decreases. C. Decreases indefinitely because the quantity sold will decrease. D. Increases indefinitely.