The market for a perfectly competitive industry clears at a price of $3, and the minimum average cost for all firms is $2.50 . In the long run, we would expect an increase in
a. each firm's output.
b. the number of firms.
c. each firm's profit.
d. each firm's average cost.
b
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
One reason why soda companies are so fervently against this tax might be because they assume sellers will pay the entire tax. Sellers will pay the entire tax if
A) demand is perfectly inelastic. B) the price elasticity of demand is between zero and 1. C) demand is unit elastic. D) demand is perfectly elastic.
Many low-income countries are unable to provide a fertile climate for domestic economic growth and to attract foreign investment because
a. they lack sufficient natural resources. b. their populations are self-sufficient. c. they lack economic and legal stability. d. they are located in difficult to access regions.
Payday lending stores near military bases in the United States have mostly closed down since 2007 because of
A. A large increase in salaries paid to the military personnel. B. A reduced demand because of the Great Recession. C. Congress passed a law restricting interest rates to 36 percent from military personnel and their families. D. Congress has outlawed payday lending around our military bases.