A company issues bonds saying that it will use the proceeds for a safe investment. Instead, it uses the proceeds for a risky investment. Which of the following statements is true about this situation. a. This will result in a lawsuit from the stockholders because it is bait and switch. b. This will result in a decrease in the value of the debt because the company is riskier. c. This will cause bondholders to convert their bonds to stock. d. Dividends will go up to compensate shareholders for their increased risk. e. This will result in a decrease in the value of the equity because the company is riskier.

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatmr=mc at the optimal quantity for each firm. furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isless than the minimum average total cost. true or false: this indicates that there is a markup on marginal cost in the market for engines. true false monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. the presence of the externality implies that there is too little entry of new firms in the market.