When firms in monopolistic competition incur an economic loss, some firms will
A) enter the industry and produce more products.
B) exit the industry, and demand will increase for the firms that remain.
C) exit the industry, and demand will decrease for the firms that remain.
D) enter the industry, and demand will become more elastic for the original firms.
E) exit the industry and other firms will enter.
B
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Due to the law of diminishing marginal utility, _____
a. the first unit of a product offers more satisfaction than the last unit of the same product b. the marginal utility curve is upward sloping c. when marginal utility becomes negative, total utility increases d. marginal utility is zero when total utility is zero e. when marginal utility becomes positive, total utility declines
Which of the following is a series of events that accurately describes the steps by which restrictive monetary policy is effective?
A. Increase in M1, decrease in investment, and decrease in interest rate. B. Decrease in interest rate, decrease in M1, and increase in investment. C. Decrease in M1, increase in interest rate, and decrease in investment. D. Increase in M1, increase in interest rate, and increase in investment.