Senator Hubris wants to pass a law that would require all monopolistically competitive firms to operate at their efficient scale. If this law were to pass and be enforced, we would expect that monopolistically competitive firms would
a. see their profits increase.
b. break even.
c. lose money.
d. not really be affected by the law.
c
Economics
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A) normal B) inferior C) substitute D) complementary
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In the Solow model, if total saving exceeds depreciation,
A) gross investment is negative. B) real wages decrease. C) capital deepening stops. D) capital stock increases.
Economics