If new firms enter a monopolistically competitive market structure in the long run, ________
A) the demand curves faced by the existing firms shift to the right
B) the demand curves faced by the existing firms become perfectly inelastic
C) the demand curves faced by the existing firms become more elastic
D) the supply curves of the existing firms become relatively more elastic
C
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Explain how an increase in the public's taste towards less leisure would affect the labor market, the production function, and aggregate output. Provide graphs to illustrate
What will be an ideal response?
Under the gold standard,
a. no nation had control of its domestic monetary policy, and therefore no nation could control its aggregate demand. b. the world's commerce was at the mercy of gold discoveries. c. discoveries of gold meant higher prices in the long run and higher real economic activity in the short run. d. All of the above are correct.
Government corruption
a. impedes the coordinating power of markets and discourages investment. b. impedes the coordinating power of markets but does not discourage investment. c. does not impede the coordinating power of markets, but does discourage investment. d. can neither impede the coordinating power of markets nor discourage investment.
Joe consumes pizza and movies. He is currently spending his entire income and his marginal utility of pizza is 10 and his marginal utility of movies is 5
If the price of a pizza is $10 and the price of a movie is $5, then to maximize his utility Joe should A) increase consumption of pizza and decrease consumption of movies. B) increase consumption of movies and decrease consumption of pizza. C) not change his current bundle of movies and pizza. D) increase consumption of both goods.