When an innovation is created by one firm in a perfectly competitive market,
a. the market price will rise
b. less output will be produced by its competitors
c. the long-run equilibrium price remains the same but the economic profit of its competitors falls
d. some firms leave because the price will fall
e. other firms will imitate the innovator
E
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If zinc suppliers are successful in forming an international zinc cartel, they will experience
a. lower output and higher prices, which discourage the entry of new firms into the industry b. lower output, higher prices, and the need to organize an effort to prevent the entry of new firms into the industry c. higher output and higher prices, which discourage the entry of new firms into the industry d. higher output, higher prices, and the need to organize an effort to prevent the entry of new firms into the industry e. none of the above
Perfectly competitive markets are characterized by: a. rivalry in product design
b. competition in terms of product quality. c. attempts by sellers to outdo one another with good service. d. none of the above.
Property rights includes 3 elements:
What will be an ideal response?
The main criticism leveled at the rational expectations school of economic thought is that
A. they assume too much influence due to monopoly power. B. they just go too far in ascribing rationality to the general population. C. the assumption that the velocity of circulation is predictable in the short run is not borne out by the facts. D. the assumption that labor union contracts create a rigid wage structure is unrealistic.