In the Model of Monopolistic Competition,if Firms Have ________ Average

question 16

Multiple Choice

In the model of monopolistic competition,if firms have ________ average cost curves,then opening trade will ________ the total number of firms and ________ the average price.

• A) downward sloping; decrease; decrease
• B) downward sloping; decrease; increase
• C) downward sloping; increase; decrease
• D) upward sloping; decrease; increase
• E) upward sloping; increase; decrease

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Definitions:

Annual Report

Summary of a firm’s financial information, products, and growth plans for owners and potential investors.

Income Statement

A financial report that shows an organization’s profitability over a period of time—month, quarter, or year.