Suppose that A-Mart sells fashion clothing in a shopping mall along with many other fashion retail stores. If A-Mart earns economic profits in the short run, then in the long run
A) no more fashion retail stores will open and the demand curve for A-Mart will shift left.
B) no more fashion retail stores will close and the demand curve for A-Mart will shift right.
C) some fashion retail stores will open and the demand curve for A-Mart will shift left.
D) some fashion retail stores will close and the demand curve for A-Mart will shift right.
E) the number of fashion retail stores will remain the same and the demand curve will stay constant.
Correct Answer:
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Q63: Firms leave a monopolistically competitive industry when
A)other
Q64: If a monopolistically competitive firm is earning
Q65: Exhibit 11-1 Q66: A monopolistically competitive firm is said to Q67: In the long run, a monopolistically competitive Q69: If a monopolistically competitive firm is in Q70: Monopolistic competitors can always prevent entry and Q71: In the long run, a monopolistically competitive Q72: Exhibit 11-1 Q94: If additional firms enter a monopolistically competitive
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