Suppose a monopolistically competitive industry evolved into a perfectly competitive industry. Which of the following statements is correct?
A) The industry would produce more output and charge a lower price after the change.
B) The industry would produce at decreasing returns to scale.
C) Elasticity of demand for the firm's product would remain the same after this change occurred.
D) This industry would produce the same level of output at lower prices in the long run than before the change.
A
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In the market for newly developed real estate, adverse selection could occur when
a. The buyers can observe and detect all the features of the properties b. The buyers know more about the property than the developers c. The developers of the property know more about the properties than the buyers d. Neither parties knows about the item properly