Homework Clinic
Social Science Clinic => Economics => Topic started by: moongchi on Jun 29, 2018
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Of the following high-income countries, which has the lowest infant mortality rate?
A) Canada B) Japan
C) the United Kingdom D) the United States
Question 2
What happens in the long run if firms in a monopolistically competitive industry are incurring economic losses? Explain.
What will be an ideal response?
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Answer to Question 1
B
Answer to Question 2
If firms in a monopolistically competitive industry are incurring economic losses, firms will exit the market. As firms exit, the demand curve facing each remaining firm begins to shift to the right. This process continues until the remaining firms are no longer incurring losses. The above is also true of perfectly competitive firms as well.
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Correct answers!
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Great! Please up vote :D