When entry barriers into a market are high,
a. a monopolist will always be able to make an economic profit.
b. rival firms will enter and drive price down to the level of per-unit costs if the firms in the market are making economic profit.
c. entry into the market will not take place, at least not quickly, even if the firms currently in the market are making economic profits.
d. the producers in the market will have little or no incentive to produce efficiently (at a low cost).
C
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Changes in a currency's exchange rate adjust immediately to insure that
A) official settlements account parity always prevails. B) net exports always equal zero. C) interest rate parity always prevails. D) current account balance equals zero. E) purchasing power parity always prevails.
All of the following are true for the leader firm in a Stackelberg oligopoly with a linear demand and marginal cost except which one?
A) The leader earns more profit than the follower second firm. B) The leader earns more profit than if it operated in a Chamberlin oligopoly. C) The leader has first-mover advantage. D) The leader takes the follower second firm's best-response production into consideration when determining its output level.
In general, as individuals undertake additional years of schooling,
A) their stock of human capital increases. B) the marginal productivity of individuals as workers declines. C) the marginal benefit to society of the extra years of education increases. D) the marginal productivity of individuals as workers becomes negative.
Sometimes, changes in monetary policy and/or fiscal policy are intended to offset changes to aggregate demand over which policymakers have little or no control
a. True b. False Indicate whether the statement is true or false