Author Question: The figure above shows a monopolistically competitive firm in the short run. During the transition ... (Read 84 times)

HCHenry · **on:** Jun 29, 2018

The figure above shows a monopolistically competitive firm in the short run. During the transition to the long run, the demand curve will shift ________ and the MR curve will shift ________.

A) leftward; leftward
B) leftward; rightward
C) rightward; leftward
D) rightward; rightward

Question 2

Governments often intervene in agricultural markets by

A) granting subsidies.
B) setting production quotas that will increase production.
C) setting price floors that reduce prices for buyers.
D) imposing heavy taxes on farm products.