Tony's Italian Ice is a monopolistically competitive firm. If Tony's earns a profit in the short run, which of the following is most likely to occur?
A) New firms that sell Italian ice will enter the market and Tony's cost curves will shift to the left.
B) New firms that sell Italian ice will enter the market and Tony's demand curve will shift to the left.
C) New firms that sell Italian ice will enter the market and Tony's demand curve will shift to the right.
D) New firms that sell Italian ice will enter the market and Tony's demand curve will become more inelastic.
Answer: B
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Which of the following theories predicts that there can be no sustained rise in real GDP per person above the subsistence level?
i. Classical growth theory ii. New growth theory A) i only B) ii only C) Neither i nor ii D) Both i and ii E) None of the above because whether the rise in real GDP per person is sustained or not depends on what created the rise.
The Phillips curve shows the trade-off between rates of inflation and rates of unemployment
Indicate whether the statement is true or false
If the current cash price is $8.80/bushel, storage costs are $0.15/bushel, August futures are currently trading at$9.20/bushel, and you expect the basis in July to be $0.20/bushel under August, then your expected profits from storing until July would be:
A. $0.05/bushel B. $-0.35/bushel C. $0.35/bushel D. $-0.05/bushel
Refer to the diagram for the corn market. A price support of B will cause a transfer from taxpayers to farmers of:
A. 0BKL.
B. MAFG.
C. 0MFG.
D. LKCG.