Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Why my answer in red is incorrect ? , and what is the correct answer The market for plumbing services in a city can be

Why my answer in red is incorrect ? , and what is the correct answer

image text in transcribed
The market for plumbing services in a city can be characterized by the model of monopolistic competition. Suppose that the market is initially in long-run equilibrium, and then there is an increase in demand for plumbing services. We expect that in the long run: Select one: O a. firms will leave the plumbing market. O b. there will be a short-run increase in the number of firms, but then the number will return to the original level. X O c. new firms will enter the plumbing market. O d. firms will shut down, but they will not leave the industry. The correct answer is: new firms will enter the plumbing market

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Economics questions

Question

Pollution

Answered: 1 week ago

Question

The fear of making a fool of oneself

Answered: 1 week ago