For a normal good, if incomes rise, we would expect that the equilibrium price will increase and that the equilibrium quantity will increase

Minimax Motors, a car manufacturer, spent $300 million on the establishment of a new plant that includes 25 assembly lines. The new plant has 470 employees that work 5 days a week to produce 1,200 cars per week. If Minimax Motors wants to increase its output to 1,400 cars per week immediately, it should: a. increase the number of assembly lines in its plant

b. increase the number of workers in the plant. c. increase the number of workers as well as the number of assembly lines in the plant. d. open a new plant with more assembly lines and workers.

If regulators required firms in monopolistically competitive markets to set price equal to marginal cost,

a. firms would most likely experience economic losses. b. firms would also operate at their efficient scale. c. new firms would likely to enter the market. d. the most efficient firms would not likely to be affected.