Author Question: Tony's Italian Ice is a monopolistically competitive firm. If Tony's earns a profit in the short ... (Read 409 times)

leo leo

  • Hero Member
  • *****
  • Posts: 566
Tony's Italian Ice is a monopolistically competitive firm. If Tony's earns a profit in the short run, which of the following is most likely to occur?
 
  A) New firms that sell Italian ice will enter the market and Tony's demand curve will shift to the right.
  B) New firms that sell Italian ice will enter the market and Tony's demand curve will become more inelastic.
  C) New firms that sell Italian ice will enter the market and Tony's cost curves will shift to the left.
  D) New firms that sell Italian ice will enter the market and Tony's demand curve will shift to the left.

Question 2

Which of the following statements is false?
 
  A) Marginal cost will equal average total cost when marginal cost is at its lowest point.
  B) When marginal cost is greater than average total cost, average total cost will rise.
  C) Marginal cost will equal average total cost when average total cost is at its lowest point.
  D) When marginal cost is less than average total cost, average total cost will fall.


livaneabi

  • Sr. Member
  • ****
  • Posts: 328
Answer to Question 1

D

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

For a complete list of videos, visit our video library