Which of the following is always associated with monopolistic competition?
a. identical goods
b. economic profit in the short run
c. the firm's MR curve lies above its demand curve
d. the firms' demand curves become more inelastic as new entry occurs
e. product differentiation
E
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Suppose the US is in a recession while foreign countries that trade with the US are not. How will this affect the US?
A. US imports will fall, US exports will rise, and AD will fall B. US imports will fall, US exports will rise, and AD will rise C. US imports will rise, US exports will fall, and AD will fall D. US imports will fall, US exports will fall, and AD will remain unchanged
Which of the following is not an example of a government-imposed entry barrier?
A) patents B) occupational licensing C) barriers to international trade D) antitrust legislation