96. The demand curve for a firm under monopolistic competition is: A) downward s

Question

96. The demand curve for a firm under monopolistic competition is:
A) downward sloping, unlike the horizontal demand curve facing a perfectly competitive firm.
B) horizontal, unlike the downward-sloping demand curve facing a perfectly competitive firm.
C) horizontal, the same as that facing a perfectly competitive firm.
D) downward sloping, the same as that facing a perfectly competitive firm.

97. The market for plumbing services in a city can be characterized by the model of monopolistic competition. Suppose that the market is initially in long-run equilibrium, and then there is an increase in demand for plumbing services. We expect that in the short run the price:
A) and output of plumbing services will fall.
B) and output of plumbing services will remain unchanged.
C) and output of plumbing services will rise.
D) of plumbing services will rise and the output will fall.

98. The market for plumbing services in a city can be characterized by the model of monopolistic competition. Suppose that the market is initially in long-run equilibrium, and then there is an increase in demand for plumbing services. We expect that in the long run:
A) firms will leave the plumbing market.
B) there will be a short-run increase in the number of firms, but then the number will return to the original level.
C) new firms will enter the plumbing market.
D) firms will shut down, but they will not leave the industry.

Explanation / Answer

96.) A 97.) B 98.) C

Related Questions

Navigate

• Browse (All)
• Browse 9
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.