If a typical firm in a perfectly competitive industry is incurring losses, then o some firms will exit in the long run, causing market supply to decrease an d market price to rise increasing profits for the remaining firms o all firms will continue to lose money o some firm s will enter in the long run, causing market supply to increase and market price to rise increasing profit for all firms. some firms wi firms. ll exit in the long run, causing market supply to decrease and market price to all increasing losses for the remaining question 18 if a typical monopolistically competitive firm is making short-run losses, then o the industry will eventually cease to exist o as some firms leave, the remaining firms ill experience an increase in the demand for their products he demand for the products of the remaining firms will become more elastic o other more competitive firms will enter the market.

Adog whistle manufacturer's factory was located near a residential area. the manufacturer used the most effective methods for testing its whistles, but it was impossible to completely soundproof the testing area. a breeder of champion show dogs bought some property near the factory and raised and trained her dogs there. although the whistles were too high-pitched to be perceived by human ears, they could be heard by the breeder's dogs. consequently, the dogs often were in a constant state of agitation. in a suit by the breeder against the manufacturer, what is the likely outcome? response - correct a the breeder will prevail on a trespass theory, because the sound waves are entering onto the breeder's property. b the breeder will prevail on a nuisance theory, because the sound of the whistles is a substantial interference with the breeder's use of her land. c the breeder will not prevail, because the sound of the whistles is not a substantial interference with the breeder's use of her land. d the breeder will not prevail, because the manufacturer has acted reasonably in testing its whistles.