In the long-run, firms in a monopolistically competitive industry will
a. earn substantial economic profits
b. tend to just cover costs, including normal profits
c. seek to increase the scale of operations
d. seek to reduce the scale of operations
b
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Is the United States a net borrower or a net lender? Is it a debtor or a creditor nation?
What will be an ideal response?
Suppose a roll of paper towels costs $5 at Sam's Quick Stop, a local quick stop, and the same roll of paper towels costs $2 at Big Supplies, a large, retailer located in a more remote location. If a customer's total cost of travel to Sam's Quick Stop is $3 and is $6 to Big Supplies, which of the following is true?
A) It is more expensive for the consumer to buy the paper towels at Big Supplies. B) It is cheaper for the consumer to buy the paper towels at Sam's Quick Stop. C) It is cheaper for the consumer to buy the paper towels at Big Supplies. D) The consumer is indifferent as to where they buy the paper towels.
The opportunity cost of an action includes: a. the monetary expenses incurred as a result of the action
b. the highest valued alternative use of the time spent on the action. c. the benefits received as a result of the action. d. only a. and b.
An increase in consumer income will shift both the supply and demand curves
a. True b. False Indicate whether the statement is true or false