When the existing firms in a monopolistically competitive industry earn above-normal profit:
a. new firms enter into the market, and entry continues until firms earn normal profit.
b. new firms have no incentive to enter the market.
c. new firms have an incentive to enter the market but are legally barred from doing so.
d. they increase their production and lower the price level.
e. their cost structure automatically changes, eliminating the additional profit.
a
Economics
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If a bond was to pay off one year from now for $630 and was purchased for $600, what is the interest rate?
A) 3 percent B) 5 percent C) 15 percent D) 30 percent
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Exhibit 30-5
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