Nike is a firm in monopolistic competition. If Nike is earning an economic profit from new cross-training shoe, over time the demand for these shoes
A) increases as new firms enter the market.
B) decreases as new firms enter the market.
C) does not change as new firms enter the market.
D) decreases as firms exit the market.
E) increases as firms exit the market.
B
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If net exports are equal to net foreign investment
A) the current account balance is equal to the negative of the financial account balance. B) the balance of payments is zero. C) net capital inflows are equal to imports minus exports. D) All of the above are true when net exports are equal to net foreign investment.
If $1 is worth 10 yen, then 1 yen is worth:
A. $0.01. B. $0.10. C. $1.00. D. $1.10.
If Sally Smith creates VCU1 by playing an online game, the effect is to cause the nation's:
a. Monetary base to remain the same. b. M2 money supply to fall. c. M2 money multiplier to fall. d. Monetary base to rise.
Flat Ripple Canoes produces canoes at a cost of $300 each. They receive $425 per canoe when they sell them. What is the producer surplus per canoe in this case?
a. $125 b. $300 c. $425 d. $725