If a firm in a monopolistically competitive market has a demand curve that is shifting to the right, it will only stop shifting when:
A. the firm is earning zero economic profits.
B. the firm's price is equal to its average total costs.
C. other firms have no incentive to leave the market.
D. All of these statements are true.
D. All of these statements are true.
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Adverse selection is a barrier to financing global growth because
A) of the differences between financing using loans, portfolio investment and foreign direct investment. B) if investors have trouble identifying high-risk firms they may be unwilling to lend funds to creditworthy firms. C) firms sometimes have trouble determining whether they need funds or not. D) there is the possibility that the funds are used for riskier behavior than the lender agreed to.
If a commodity is inexpensive and its total utility great,
a. it is an inferior good. b. it is plentiful. c. its marginal utility is high. d. the ratio of price to marginal utility is very high.