If new firms enter a monopolistically competitive market structure in the long run, ________
A) the demand curves faced by the existing firms shift to the right
B) the demand curves faced by the existing firms become perfectly inelastic
C) the demand curves faced by the existing firms become more elastic
D) the supply curves of the existing firms become relatively more elastic
C
Economics
You might also like to view...
When demand is inelastic,
A) price and revenue move in opposite directions. B) price and revenue are not related. C) price and quantity demanded move in opposite directions. D) price and revenue move in the same direction.
Economics
The following table shows the aggregate supply and demand data for a country.
What is the equilibrium price level?
a. 200
b. 400
c. 500
d. 800
Economics