If firms monopolistically competitive firms are making an economic profit, as new firms enter the market, each of the existing firms' demand curve shifts ________, the marginal curve shifts ________, and the profit-maximizing quantity ________.
A) leftward; leftward; decreases
B) rightward; leftward; increases
C) leftward; rightward; decreases
D) leftward; leftward; increases
Question 2
When the production of a good creates an external cost, in order for taxes to be effective in achieving the efficient allocation of resources, the tax must be set equal to the
A) marginal private cost.
B) marginal external cost.
C) marginal social cost.
D) marginal benefit of polluting.
This graphic illustrates the original systems model of politics advanced by David Easton. Politics
Having a time zone map located near the telephone will assist you when making long distance calls ou
Indicators of Relative Economic Well-Being
Ethical Decision-Making Model Cont
economic question
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