In competitive markets, negative economic profits are eliminated by entry to the industry
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Rent seeking refers to the asking prices for goods and services being sold on the black market
Indicate whether the statement is true or false
One strategy that can be used to establish expensive procurement contracts is to start a program with relatively low initial costs. This strategy might be an unintended consequence of _____
a. military alliances with nations producing needed military goods b. unexpectedly high development costs associated with new technology c. the political process d. the incentives facing firms bidding for the expensive procurement contracts
What is the aspect of imperfect competition that is most distinct from perfect competition?
A) free entry/exit B) perfect information C) differentiated products D) zero profits
If the Fed wanted to decrease the money supply, one way to make an enormous impact would be to:
A. increase the reserve requirement, which would decrease the money multiplier. B. decrease the reserve requirement, which would decrease the money multiplier. C. increase the reserve requirement, which would increase the money multiplier. D. decrease the reserve requirement, which would increase the money multiplier.