When a second firm enters a monopolist's market:
A. the former monopolist's average cost decreases as its output level decreases.
B. the demand curve facing the former monopolist shifts to the right.
C. the market price falls.
D. None of these
Answer: C
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In which of the following areas were substantial New Deal reforms NOT made?
a. The commercial banking system. b. The Federal Reserve System. c. Securities markets. d. Corporate accounting standards.
According to behavioral economics, cognitive biases:
A. create errors in decision making, but these errors are random and follow no particular pattern. B. occur but are not prevalent enough to distort the behavioral predictions of neoclassical economics. C. are misunderstandings or misperceptions that cause systematic error. D. are solely the result of faulty heuristics.