Competitive firms earn zero profit in the long run when
A) entry is completely free.
B) entry is limited.
C) Both A and B.
D) Neither A nor B.
D
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The demand for dollars will increase when
A) real interest rates in the United States fall. B) U.S. labor productivity increases relative to the world. C) the world is perceived as more stable than it used to be. D) U.S. residents develop a taste for more imported products.
A monopolist will maximize profits by producing a quantity specified by setting marginal revenue equal to marginal cost
a. True b. False Indicate whether the statement is true or false
Suppose that the labor market for life guards is initially in equilibrium. Then a new television series debuts which glamorizes the social opportunities for life guards. What happens to the equilibrium wage and quantity of life guards?
a. Both the equilibrium wage and quantity increase. b. Both the equilibrium wage and quantity decrease. c. The equilibrium wage increases, and the equilibrium quantity decreases. d. The equilibrium wage decreases, and the equilibrium quantity increases.
Figure 3-21
Refer to . At the quantity Q3,
a.
the market is in equilibrium.
b.
consumer surplus is maximized.
c.
the sum of consumer surplus and producer surplus is maximized.
d.
the value to buyers is less than the cost to sellers.