Properties of long-run competitive equilibrium with free entry include:
A. an equilibrium price equal to the minimum MC.
B. firms earning zero profits.
C. active firms producing at their maximum scales of production.
D. All of these are properties of long-run competitive equilibrium.
B. firms earning zero profits.
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If, in the coordination failure model, the nominal money supply acts as a sunspot variable, then it is likely that the nominal money supply would
A) be procyclical. B) be acyclical. C) be countercyclical. D) alternatively appear to be procyclical and countercyclical.
In the "Prisoners' Dilemma" game: a. When the prisoners follow their dominant strategy and confess, both will be better off than if both had remained silent. b. a player would be better off if he did not confess and the other player confessed
c. a player would be better off if he confessed when the other player also confessed, but not if the other player did not confess. d. None of the above is true.
When business is profitable, corporate managers will prefer plowback to other sources of funding
a. True b. False Indicate whether the statement is true or false
Some of the ways that industrially advanced countries (IACs) can help developing countries (DVCs) in achieving faster economic growth include the following, except:
A. Expanding trade B. Admitting in more temporary workers C. Subsidizing their own agricultural sectors D. Discouraging arms sales