As new firms enter a monopolistically competitive industry, the demand for a typical firm's product will most likely:
a. increase and become less elastic.
b. decrease and become more elastic.
c. increase and become more elastic.
d. decrease and become less elastic.
e. remain unaffected.
b
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Because a firm has implicit costs as well as explicit costs
A) its economic profit is usually the same as its accounting profit. B) its accounting profit is always less than its economic profit. C) its economic profit is usually more than its accounting profit. D) its economic profit is usually less than its accounting profit.
If China decides to enact laws to clean up the environment, what would be the effect on GDP?
A) GDP would increase reflecting the fact that the environment would be cleaner. B) GDP would decrease if the pollution controls reduce productivity by more than the cost of the controls. C) GDP would increase as the citizens of China were made happier as the environment was cleaned up. D) GDP would increase as the environmental costs of pollution were not included in the calculation of GDP.