If firms in a monopolistically competitive market are earning negative economic profits, it is likely that:
A. firms will enter the market.
B. firms will exit the market.
C. the firms in the market will shut down immediately.
D. the firms in the market will expand to try to capture lower costs per unit.
B. firms will exit the market.
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Suppose initially that the working-age population is 220 million, the labor force is 150 million, and the official U-3 unemployment rate is 10 percent
5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new U-3 unemployment rate? A) 6.25 percent B) 6.7 percent C) 9.7 percent D) 8.7 percent
Assume a country is closed. Given this information, which of the following must occur?
A) demand for domestic goods will be less than the domestic demand for goods B) demand for domestic goods will be greater than the domestic demand for goods C) S + T = I + G D) a budget surplus exists E) S = I