menu
Sign up

If Firms in a Monopolistically Competitive Market Are Earning Negative

Question 60
Multiple Choice

If firms in a monopolistically competitive market are earning negative economic profits,it is likely that: A) firms will enter the market. B) firms will exit the market. C) the firms in the market will shut down immediately. D) the firms in the market will expand to try to capture lower costs per unit.

Related questions
Q 61
If firms in a monopolistically competitive market are earning negative economic profits,the demand curve of a single firm will likely: A) shift right, as other firms leave the industry. B) shift left, as other firms leave the industry. C) shift right, as other firms enter the industry. D) shift left, as other firms enter the industry.
Q 62
If a firm in a monopolistically competitive market has a demand curve shifting to the right,it could be that: A) negative economic profits are being earned. B) firms are leaving the market. C) the selling price is less than the average total cost of the firm. D) All of these statements are true.
Q 63
If a firm in a monopolistically competitive market has a demand curve shifting to the right,it is likely that: A) positive economic profits are being earned. B) firms are entering the market. C) the selling price is less than the average total cost of the firm. D) All of these statements are true.
logo
© 2020 QuizPlus. All Right Reserved