In order for a firm to receive monopoly profits, there must be
A. mutual interdependence among firms.
B. barriers to market entry.
C. homogeneous products.
D. free entry and exit to the market.
Answer: B
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The above figure shows the cost curves for a perfectly competitive firm. If all firms in the market have the same cost curves and the price equals $16 per unit
A) the market is in its long-run equilibrium. B) over time, firms will leave this market. C) the firm is making zero economic profit. D) over time, the price will fall as new firms enter the market.
Compared to IACs, LDCs are often characterized by:
a. higher life expectancy. b. higher adult literacy rates. c. higher daily calorie supply. d. lower per capita energy consumption.
Keynesians
A. believe capitalism is inherently stable. B. believe the markets in a capitalistic economy are highly competitive. C. argue against the use of discretionary monetary policy. D. contend that government intervention in the economy is desirable.
Refer to the information provided in Figure 2.2 below for the economy of Microland to answer the question(s) that follow.
Figure 2.2Refer to Figure 2.2. Point B represents a situation of
A. full employment but production inefficiency. B. less than full employment but production efficiency. C. less than full employment and production inefficiency. D. both full resource employment and production efficiency.