With free entry:
A. there is a known and limited number of potential suppliers that can produce a good in the long run.
B. there is an unlimited number of firms that can produce a good in the long run.
C. the long run market supply curve is vertical at the market quantity.
D. the long run market demand curve is horizontal at the market price.
B. there is an unlimited number of firms that can produce a good in the long run.
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One role that markets play is
A. to allocate resources. B. provide revenues for governments to spend. C. distribute income equally. D. provide for all human wants.
The table shows the PPF of an island community. Choose the best state-ment
A. This community has enough resources to produce 2 pounds of fish and 36 pounds of berries. B. This community cannot produce 2 pounds of fish and 36 pounds of berries because this combination is inefficient. C. This community will waste resources if it produces 2 pounds of fish and 22 pounds of berries. D. This community can produce 2 pounds of fish and 30 pounds of berries but this combination is inefficient.
If a firm increases output and its average total cost rises, then the firm is experiencing economies of scale
a. True b. False Indicate whether the statement is true or false
An increase in AD will trigger more inflation under which of the following conditions?
a. AD is relatively steep. b. AD is relatively flat. c. AS is relatively steep. d. AS is relatively flat.