When new firms are encouraged to enter a monopolistically competitive market
A) some existing firms must be earning economic profits.
B) the demand curve facing an existing firm shifts to the right.
C) they do so because there is insufficient product differentiation.
D) the marginal cost curve facing an existing firm shifts downwards.
A
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In addition to saving and investment in capital, making an even larger contribution to long-term economic growth in real GDP per person
A) are technological advances. B) is lower current consumption. C) is higher current consumption. D) is a larger work force.
Soran is risk averse. If her wealth rises by $100, her total utility increases by 300. If her wealth increases, her total utility will decrease
A) by more than 300. B) by less than 300. C) by 300. D) by some amount that cannot be determined without more information.