Which of the following may transform an industry from oligopoly to monopolistic competition?

A. Significant vertical integration
B. Exit of firms
C. A series of horizontal mergers
D. Entry of new firms

Answer: D

Economics

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For a given level of inflation, if bright prospects for the future of the economy cause businesses to increase their investment in new capital, then the ________ shifts ________.

A. aggregate demand curve; left B. short-run aggregate supply line; downward C. aggregate demand curve; right D. short-run aggregate supply line; upward

Economics

Public goods represent ________ because by their very nature they are nonexcludable and nonrival which makes it difficult for the private sector to supply them profitably.

A. a negative externality B. a positive externality C. efficient production D. a market failure

Economics