In a monopolistically competitive market, a successful new restaurant
A) can earn economic profits in the long run if it uses barriers to restrict entry by new restaurants.
B) must obtain a trademark to ensure that it will break even in the long run.
C) will face high entry barriers because of health and safety regulations to which all restaurants are subject.
D) will earn zero economic profit in the long run because of free entry, but competition will lead restaurants to offer different versions of the same product.
D
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If good X is an inferior good, a decrease in consumer income, other things being equal, will shift the:
a. demand curve for good X to the right. b. demand curve for good X to the left. c. supply curve for good X to the right. d. supply curve for good X to the left.
Suppose you volunteer to help clean up your neighborhood, and the only payment you receive is the sense of goodwill that develops with your neighbors. Your efforts cause the GDP of the economy to
A. Fall by the opportunity cost of the time you spend doing volunteer work. B. Rise by the opportunity cost of the time spent by all of the people in the neighborhood on the volunteer project. C. Rise by the value of increased cleanliness of the neighborhood. D. Remain unchanged.