The process of entry and exit into a monopolistically competitive market continues until:
A. profits are positive.
B. profits are negative.
C. profits are zero.
D. Any of these statements could be true.
C. profits are zero.
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U.S. government purchases of gold are officially carried out by the
A) New York Federal Reserve Bank. B) Federal Open Market Committee. C) Federal Deposit Insurance Corporation. D) U.S. Treasury.
If the Fed purchases $100,000 in government bonds from a bank, then the
A) liabilities of the bank rise by $100,000. B) reserves of the bank fall by $100,000. C) assets of the bank rise by $100,000. D) reserves of the bank rise by $100,000.
A combination of two goods which lies beyond the production possibilities curve indicates: a. underutilization of resources
b. overutilization of resources. c. constant opportunity costs. d. a combination that cannot be produced with existing resources. e. society's most preferred combination of two goods.
In a competitive market, prices adjust until all consumers find themselves
A) maximizing utility. B) on the contract curve. C) happy with their original endowment. D) with many opportunities to gain from additional exchange.