Which of the following best describes the market reaction if a city restricts the number of firms that are allowed to operate in a market?
A) The market supply curve shifts to the left.
B) The market demand curve shifts to the left.
C) Quantity supplied increases because price increases.
D) Price decreases.
A
Economics
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Which of the following is NOT a characteristic of long-run equilibrium in monopolistic competition?
A) The firm earns zero economic profit. B) Price is equal to average total cost. C) Production occurs at minimum average total cost. D) Marginal revenue is equal to marginal cost. E) Price exceeds marginal revenue.
Economics
What do rational expectations theorists believe? What is their critics' point of view?
Economics