If firms in a monopolistically competitive industry are making an economic profit, then definitely there is
A) a leftward shift in each firm's demand curve as new firms enter the market.
B) a rightward shift in each firm's marginal revenue curve as new firms enter the market.
C) an upward shift in each firm's cost curves as new firms enter the market.
D) All of the above answers are correct.
Question 2
When the price of popcorn falls, before there is any change in consumption, the
A) marginal utility of popcorn definitely increases.
B) marginal utility per dollar from popcorn definitely increases.
C) total expenditure on popcorn definitely rises.
D) entire total utility of popcorn curve definitely shifts rightward.
