Free entry means that
a. the government pays any entry costs for individual firms.
b. government-funded research lowers the costs of patents and other barriers to entry.
c. a firm's marginal cost is zero.
d. no legal barriers prevent a firm from entering an industry.
d
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If you discover that the opportunity cost of raising your economics grade is zero, you
A. are studying too hard and receiving a higher grade than is optimal for you. B. must be on the production possibilities frontier that describes your trade-offs between producing high grades and producing other goods. C. must be inside the production possibilities frontier that describes your trade-offs between producing high grades and producing other goods. D. must be producing more of other goods than is optimal for you.
Suppose attendance is required for a passing grade at Ultimatum University, and the professor repeatedly reminds students of the need to attend every day to survive the class. Nevertheless, we observe many students choosing to stop attending
The students who stop attending include some who even enjoy the class. Using the economic way of thinking, the choice to stop attending generally occurs because A) the students secretly despise the professor. B) the professor secretly despises the students. C) the students value other goods in addition to passing the class. D) the students feel the university has no right to impose such restrictions on their personal freedom.
A monopolistically competitive firm has the free entry characteristics of ________ and the price setting characteristics of ________
A) an oligopolistic market; perfect competition B) perfect competition; a monopoly C) a monopolistic market; a cartel D) perfect competition; perfect competition
A surplus will result whenever the:
a. government imposes a price floor below the equilibrium price. b. government imposes a price ceiling below the equilibrium price. c. government imposes a price floor above the equilibrium price. d. government imposes a price ceiling above the equilibrium price.