The decision by firms to enter a market shifts the market supply curve to the right.
Answer the following statement true (T) or false (F)
True
If the number of producers increases, the supply curve will increase.
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Brinley Thomas' (1954) thesis explains
(a) fluctuations in immigration. (b) fluctuations in European domestic investment. (c) fluctuations in European foreign investment. (d) all of the above.
Suppose the demand for Pepsi is qp = 54 - 2pp + 1p. The demand for Coke is qc = 54 - 2pc + 1pp. Each firm faces a constant marginal cost of zero. Determine the Bertrand equilibrium prices
What happens to the Bertrand equilibrium prices and profits if increased differentiation causes the demand for Pepsi to become qp = 104 - 2pp + 1pc while the demand for Coke remains unchanged?
In the short run, the fixed costs of a firm:
A. can sometimes be avoided in the short run. B. are irrelevant in deciding whether to shut down production. C. are equal to zero when quantity produced is zero. D. are all the costs it incurs when it produces some positive quantity.
Analysis of a proposed merger involves examining its effect only on a market's concentration.
Answer the following statement true (T) or false (F)