Which of the following is NOT a characteristic of an increasing cost competitive industry? As the industry expands in the long run,
A. the number of firms increase.
B. the price of product remains constant.
C. the prices of some inputs rise.
D. the cost of production increases.
E. none of the above
Answer: B
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The Federal Reserve plays a larger role than Congress and the president in stabilizing the economy because
A) the Federal Reserve can more quickly change monetary policy than the president and the Congress can change fiscal policy. B) changes in interest rates have their full effect on the economy in a short period of time, whereas changes in government spending and taxes have their full effect over a long period of time. C) the Federal Reserve can immediately recognize when real GDP is below or above potential GDP. D) changes in interest rates have a considerably larger effect on the economy than changes in government purchases or taxes.
Refer to the Article Summary. ________ depend on increases in labor productivity
A) Decreases in the unemployment rate B) Advances in technology C) Increases in real GDP per capita D) Decreases in the inflation rate
The price of stadium seats at a baseball game increases from $20 to $30 and ticket sales fall from 45,000 per game to 35,000 per game. If other things remained constant, then it appears that the price elasticity of demand is: a. elastic
b. inelastic. c. unit elastic. d. unit inelastic. e. equal to zero.
A firm announces that in order to purchase a Blu-ray player, its customers must also purchase 10 Blu-rays. This is an example of:
A. a tie-in sale. B. monopoly pricing. C. price discrimination. D. predatory pricing.