As new firms enter a monopolistically competitive industry, the demand
A. curve facing each firm begins to shift to the right but the marginal revenue curve remains constant.
B. and marginal revenue curves facing each firm begin to shift to the right.
C. and marginal revenue curves facing each firm begin to shift to the left.
D. curve facing each firm shifts to the left, but the marginal revenue curve remains constant.
Answer: C
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When the United States engaged in quantitative easing from 2008 to 2014, why didn't the money supply rise sharply?
A) Foreigners wanted all the new dollars created by the Federal Reserve. B) Banks held the increased monetary base as excess reserves. C) The Fed offset the increased monetary base by raising reserve requirements. D) The Fed offset the increased monetary base by buying foreign currency.
If expected inflation were 2%, and teh real interest rate was 5%, what sector would be worse off if the actual inflation rate turned out to be 6%
a. Lenders. b. Borrowers. c. Both. d. None.