Assume that a constant-cost, perfectly competitive market is initially in long-run equilibrium. After all long-run adjustments are made, which of the following would occur as a result of an increase in the price of a complement to this industry's product?
a. The market price would remain unchanged; the market quantity would rise.
b. The market price would rise; the market quantity would fall.
c. The market price would remain unchanged; the market quantity would fall.
d. Both the market price and the market quantity would fall.
e. Both the market price and the market quantity would rise.
C
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With fixed exchange rates, central banks must finance trade deficits, allow a devaluation, or else use trade restrictions to restore equilibrium
Indicate whether the statement is true or false
Refer to Table 8.1. That the firm is perfectly competitive is evident from its
A) increasing marginal cost. B) increasing total cost. C) zero economic profits. D) constant marginal revenue. E) absence of marginal values at Q = 0.
In order for the balance of payments to balance,
a. the current account balance must equal the capital account balance b. international reserves must flow out of the country c. international reserves must flow into the country d. the current account balance plus the capital account balance plus the net flow of international reserves plus the statistical discrepancy must equal zero e. the current account balance plus the capital account balance plus the net flow of international reserves must be greater than the statistical discrepancy
Workers in the poor countries of the world where labor intensive products are produced earn between ________________ per day compared to United States workers earning eight to twelve dollars per hour.
Fill in the blank(s) with the appropriate word(s).