In a monopolistically competitive equilibrium, firms outside the industry could make at most zero profit by entering the industry.
Answer the following statement true (T) or false (F)
True
Rationale: If this were not the case, the industry would not be in equilibrium since firms outside would have an incentive to enter.
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One result of the financial meltdown of the late 2000s was that mortgage institutions ________ and ________ were brought under direct control of the government
A) Fannie Mae; Freddie Mac B) Lehman Brothers; FDIC C) Glass Steagall; Sarbanes Oxley D) Goldman Sachs; Morgan Stanley
A competitive equilibrium is Pareto optimal if there is no way to rearrange or to reallocate goods so that
A) anyone can be made better off. B) no one can be made worse off. C) someone can be made better off without making someone else worse off. D) someone can be made better off without making everyone else worse off.