The main reason(s) firms in a competitive market cannot earn positive profits in the long run is(are)
a. assets can quickly move in and out of the industry when demand fluctuates
b. an increase in demand leads to entry of firms which absorb the extra demand
c. a decrease in demand leads to exit of firms from the market such that there is no surplus
d. all of the above
d
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What has been the average growth rate of U.S. real GDP per person over the past 100 years? In which periods was growth most rapid and in which periods was it slowest?
What will be an ideal response?
Effective protection will be greater if, all else equal,
a. imported inputs are a small percentage of the final product b. tariffs on imported inputs are high c. tariffs on the final product are low d. quotas are added to tariffs on imported inputs e. none of the above
In order to use schooling as a signal,
A. firms must be able to easily verify each worker's amount of schooling. B. some people must choose to not complete schooling. C. the signal must be costlier for low-skilled workers than for high-skilled workers. D. the cost of purchasing the signal must not be so costly that high-skilled workers do not value obtaining it. E. All of these are required for schooling to serve as a signal.
Which of the following would not be included in the government consumption expenditures and gross investment (G) category of GDP?
A. The payments made to Social Security recipients. B. The expenditures made to repair a highway. C. The spending for professors at state universities. D. The purchase of new china for White House functions.