As long as TVC < TR, a firm will have a positive level of output in the short run.

When a new firm enters a monopolistically competitive market, the individual demand curves faced by all existing firms in that market will

a. shift to the left. b. shift to the right. c. shift in a direction that is unpredictable without further information. d. remain unchanged. It is the supply curve that will shift.

The argument that with initial protection an industry will eventually become competitive is called the

A) national security argument. B) strategic bargaining argument. C) the trade adjustment assistance argument. D) infant industry argument.