How does the exit of firms from a monopolistically competitive market affect the demand curves faced by the existing firms?
What will be an ideal response?
The exit of firms from a monopolistically competitive market shifts the demand curves faced by the existing firms to the right and causes them to become steeper.
Economics
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A revaluation of the exchange rate is a policy action that
A) increases the real exchange rate. B) decreases the real exchange rate. C) increases the nominal exchange rate. D) decreases the nominal exchange rate.
Economics
In an open economy, the real level of U.S. exports and the quantity of RGDP demanded ______ the price level
a. Move in the same direction as b. Move in the opposite direction from c. Are not affected by d. Have an indeterminate relationship with
Economics