In a monopolistically competitive market, the lower the firms' fixed costs,
A) the higher the deadweight loss.
B) the less firms are active in equilibrium.
C) the more firms are active in the equilibrium.
D) the higher the prices charged.
C
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When property rights are assigned and transactions costs are low,
A) all costs and benefits are taken into account by the transacting parties so the transaction is efficient. B) externalities will result in market failure. C) the marginal social benefit curve shifts leftward and the marginal social cost curve does not shift. D) the marginal social cost curve shifts rightward and the marginal social benefit curve does not shift. E) the marginal social cost curve shifts rightward and the marginal social benefit curve also shifts rightward.
The break-even investment line becomes flatter when the depreciation growth rate ________ or the labor force growth rate ________
A) increases; decreases B) increases; increases C) decreases; increases D) decreases; decreases