If a firm can segment its market, and the parts cannot communicate among themselves, then
A) arbitrage can occur.
B) prices in the segments will tend to be equal over time.
C) arbitrage cannot occur.
D) the different elasticities will be equal over time.
C
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If the quantity supplied exceeds the quantity demanded, then there is
A) a shortage and the price is below the equilibrium price. B) a shortage and the price is above the equilibrium price. C) a surplus and the price is below the equilibrium price. D) a surplus and the price is above the equilibrium price.
Which of the following is the fundamental resource that is the basis of labor?
a. capital b. natural resources c. time d. money e. entrepreneurial ability
Suppose that a firm in an industry subject to diminishing returns to scale is initially in long run equilibrium. Which of the following will not be part of the industry adjustment process to a permanent increase in demand? a. Some firms will temporarily make economic profits
b. Some new firms will enter. c. The long run equilibrium price will be higher than the initial equilibrium price. d. All of the above will be consequences.
If the price per barrel of Crude decreases in the international market, then this event would most likely:
a. Increase aggregate demand in the United States b. Increase aggregate supply in the United States c. Decrease aggregate supply in the United States d. Decrease aggregate demand