A monopolistically competitive firm that is earning profits will, in the long run, experience all of the following except
A) demand for the firm's product becomes more elastic.
B) a decrease in demand for its product.
C) new rivals entering the market.
D) a decrease in the number of rival products.
Question 2
What is the common feature displayed by the following items?
a. eating in a newly opened fusion cuisine restaurant
b. attending a Red Sox game in Fenway Park
c. wearing Lucky Brand designer jeans
A) They are all highly inelastic goods.
B) The consumption of these goods takes place publicly.
C) They tend to be consumed by better educated people.
D) The consumption of these goods takes place privately.
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