When the Motor Carrier Act of 1980 was made into law, new firms entered into the trucking industry. This action by new trucking firms confirms that:
A. the trucking industry was earning profits in the long run prior to the entry of the new firms.
B. the trucking industry was earning losses in the long run prior to the entry of the new firms.
C. the trucking industry was earning profits as a result of the entry of the new firms.
D. the trucking industry was earning losses before and after the entry of the new firms.
Answer: A
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When a firm increases output and the costs rise disproportionately slower, then the long-run average cost curve is __________ and the firm is experiencing __________ .
A) upward sloping; diseconomies of scale
B) downward sloping; constant returns to scale
C) downward sloping; economies of scale
D) horizontal; constant returns to scale
Compared to earlier times, the period of the 1950s to the early 1960s was one characterized by
(a) temporary deficit spending of the government. (b) permanent deficit spending of the government. (c) temporary surplus spending of the government. (d) permanent surplus spending of the government.
Liberal and conservative economists agree more often on policy prescriptions than most noneconomists think they do.
Answer the following statement true (T) or false (F)
Archie can paint 5 backyard fences or repair 2 cars in 8 hours, while Austin can paint 4 backyard fences or repair 2 cars in 8 hours. Identify the correct statement
a. Archie is relatively better in repairing cars. b. Archie is relatively better in painting fences. c. Austin is relatively better in painting fences. d. Archie and Austin are equally good in painting fences. e. Neither Archie not Austin are good in repairing cars.