Author Question: When new firms choose to enter monopolistically competitive markets: a. there must be little ... (Read 65 times)

cnetterville · **on:** Jun 30, 2018

When new firms choose to enter monopolistically competitive markets:
a. there must be little diversity of products in the market.
b. they are guaranteed economic profits upon entry.
c. some firms in the market must be making economic profits.
d. the demand curve faced by an established firm will shift to the right as a result.

Question 2

Given a one-year Canadian bond with a yield of 8 percent, what will be the U.S. investor's rate of return at maturity if the Canadian dollar appreciates 10 percent against the U.S. dollar?
a. 2 percent
b. 8 percent
c. 10 percent
d. 18 percent
e. 25 percent