The above figure shows the demand and cost curves for a firm in monopolistic competition. In the long run, the demand for this firm's product will
A) decrease as other firms enter the industry.
B) decrease as product differences disappear.
C) become less elastic as firms exit the industry.
D) become less elastic as other firms enter the industry.
A
Economics
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Which price index tends to understate the impact of price changes on consumers?
A) Chain-weighted index B) Laspeyres index C) Paasche index D) Ideal cost-of-living index
Economics
If fixed cost is $200,000 and variable cost is $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be:
a. $20. b. $30. c. $50. d. $70.
Economics