In most oligopolistic industries, positive profits attract new firms and thus increase production.
Answer the following statement true (T) or false (F)
False
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Keith is a perfectly competitive carnation grower. The market price is $2 per dozen carnations. Keith's average total cost to grow carnations is $2.50 per dozen. In the long run, Keith will
A) raise his price to more than $2.50 per dozen carnations. B) raise his price to $2.50 per dozen carnations. C) exit the industry if the price and his costs do not change. D) incur an economic loss. E) continue to make an economic profit.
Suppose the United States experiences a long period of inflation relative to other countries. How will this affect U.S. net exports?
What will be an ideal response?
Natural monopolies
A) have one lowest-cost producer in an industry. B) are not regulated. C) have long-run average costs equal to zero. D) do not experience economies of scale.
Two random variables X and Y are independently distributed if all of the following conditions hold, with the exception of
A) Pr(Y = y = x) = Pr(Y = y). B) knowing the value of one of the variables provides no information about the other. C) if the conditional distribution of Y given X equals the marginal distribution of Y. D) E(Y) = E[E(Y )].