Hello all, some quick questions. Accurace is key! thank you!

QUESTION 1:

Assume that goods X and Y are substitutes and are produced in perfectly competitive markets. If there is a decrease in the supply of good X, which of the following will happen in the market for good Y in the long run?

Select one:

a. Firms will exit, causing market price to rise

b. Firms will enter, causing market price to fall

c. Price will be higher at the new long-run equilibrium as a result of entry into the market

d. The firms that were already in the industry will continue to earn positive economic profit

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QUESTION 2:

Suppose a monopolist is producing a level of output such that MR > MC. Which of the following best describes what will happen as the firm moves to its profit-maximizing equilibrium?

Select one:

a. Marginal cost and marginal revenue will both rise

b. Marginal revenue will rise and marginal cost will fall.

c. Marginal cost and marginal revenue will both fall.

d. Marginal revenue will fall and marginal cost will rise.

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Which of the following barriers to entry is is most likely to result in the creation of of new products and production processes?

Select one:

a. Patents

b. Licenses

c. Significant economies of scale

d. Ownership of an essential raw material