When new firms enter a monopolistically competitive market, the economic profits of existing firms
a. will increase because their average cost of production will decrease.
b. will decrease because their demand curves will shift to the left.
c. will increase increase because their demand curves will become more elastic elastic.
d. will remain unchanged because they sell differentiated products.
e. will decrease because their demand curves will shift to the right?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “When new firms enter a monopolistically competitive market, the economic profits of existing firms a. will increase because their average ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which of the following actions might be part of a protectionist economic policy? a. reducing barriers to trade b. signing free trade agreements c. cutting tariffs on imported goods d. establishing quotas on imports
Answers (1)
On September 30, Valerian Co. had a $110,000 balance in Accounts Receivable. During October, the company collected $110,390 from its credit customers. The October 31 balance in Accounts Receivable was $104,000.
Answers (1)
We see quite a bit of international trade in the real world. And trade is driven by specialization. So why don't we see full specialization-for instance, all cars ion the world being made in South Korea, or all mobile phones in the world being made
Answers (1)
Alaska Mining Co. acquired mineral rights for $37,878,000. The mineral deposit is estimated at 21,400,000 tons. During the current year, 2,150,000 tons were mined and solda. Determine the amount of depletion expense for the current year.
Answers (1)
Two drivers-Brian and Crystal-each drive up to a gas station. Before looking at the price, each places an order. Brian says, "I'd like 10 gallons of gas." Crystal says, "I'd like $10 worth of gas.
Answers (1)
New Questions in Business
Your firm has $500 million of investor-supplied capital, its return on investors' capital (ROIC) is 15%, and it currently has no debt in its capital structure (i. e., wd = 0).
Answers (1)
Diseconomies of scale imply that the average total cost curve is downward-sloping in the long run. a. True b. False
Answers (1)
Henrich is a single taxpayer. In 2019, his taxable income is $455,000. What is his income tax and net investment income tax liability in each of the following alternative scenarios?
Answers (1)
When a company buys equipment for $150,000 and pays for one third in cash and the other two thirds is financed by a note payable, which of the following are the effects on the accounting equation? A. Total assets decrease $50,000. B.
Answers (1)
Park Corporation issued 10-year bonds with a face value of $10,000,000. The face rate of interest on the bonds was 8%, and Park agreed to make semiannual payments. The market rate of interest at the time the bonds were issued was 6%.
Answers (1)