Because economic profits are eliminated in the long run in monopolistic competition, to earn an economic profit firms continuously
A) shut down.
B) exit the industry.
C) innovate and develop new products.
D) declare bankruptcy.
E) decrease their costs by decreasing their selling costs.
C
Economics
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If the Federal Reserve raises the real interest rate for any given inflation rate ________
A) investment spending would increase B) it would lead to higher consumption spending and net exports C) the aggregate demand curve would shift to the left D) all of the above E) none of the above
Economics
Which of the following generally does NOT seek to maximize profit?
A) public sector companies B) corporations C) partnerships D) sole proprietorships
Economics