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Vikki [24]
3 years ago
15

In the model of monopolistic competition, if an industry has large ________ relative to another industry, then we should expect

_________ firms to operate in a long-run equilibrium of that industry. A. marginal costs; less B. fixed costs; less C. marginal costs; more D. fixed costs; more
Business
1 answer:
tresset_1 [31]3 years ago
5 0

Answer:

Option A:

<em>Large</em> Marginal costs; less <em>firms in the industry</em>

Explanation:

Monopolistic competitions are market models which are charaterized by low barriers to entry.  High marginal costs will discourage firms from entering the industry, thereby leading to a reduced number of firms operating there in the long run.

Since the marginal costs reduce profit, if this continues to rise, most firms will discover that it is difficult to make profit in such an industry. They  will definitely leave industry for a different one.

This makes Option C  the answer.

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Scenario: You are an American Red Cross Disaster Program Specialist in charge of teams trained to help in sheltering displaced p
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Explanation:

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3 years ago
Identify the choice that best completes the statement or answers the question. The law of comparative advantage states that a na
ipn [44]

Answer:

By producing a product with a lower opportunity cost

Explanation:

Given that the law of comparative advantage states that a nation is better off when it produces goods and services for which it has a comparative advantage.

To obtain a comparative advantage means "By producing a product with a lower opportunity cost."

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