In the text, when the Nick Rudd Ice Company starts as a monopoly and then finally faces competition from a new entering ice company, its
a. price falls, its economic profit falls, but its output increases
b. price falls, its economic profit falls, and its ATC falls
c. price falls, its economic profit falls, and it faces a more elastic demand curve
d. price increases, its economic profit falls, and it faces a less elastic demand curve
e. ATC falls, its economic profit falls, and it faces a less elastic demand curve
C
You might also like to view...
Which one of the following would lead to an eventual change in the total money supply?
A) a customer's cash withdrawal from an ATM B) using a credit card to purchase a new television C) a customer moves funds from her checking account to her savings account D) depositing a paycheck in a bank
Everything else held constant, if income tax rates were lowered, then
A) the interest rate on municipal bonds would fall. B) the interest rate on Treasury bonds would rise. C) the interest rate on municipal bonds would rise. D) the price of Treasury bonds would fall.