If a profit-maximizing monopolistic competitor earns positive economic profits in the short run:
a. demand will become increasingly inelastic as new firms enter.
b. the firm should increase its output as new firms enter
c. there must be barriers to entry into the industry.
d. new firms will be attracted to the industry.
e. both b. and d. are correct.
d
Economics
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The horizontal summation of the demands of each consumer at different price levels is called:
A. speculative demand. B. the market demand curve. C. the price elasticity of market demand. D. consumer surplus.
Economics
When two goods are perfect substitutes, the
a. indifference curve is a downward-sloping straight line. b. marginal rate of substitution is constant. c. indifference curve is a vertical straight line. d. Both a and b are correct.
Economics