In a perfectly competitive market, a marginal entrant:
A) earns positive economic profits in the long run.
B) is the first firm to enter a market.
C) is indifferent between entering and not entering.
D) determines the market price of the good it produces.
C
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Since Norway has close trading links with the euro zone
A) a small reduction in its price will lead to an increase in euro zone demand for Norwegian goods that is large relative to Norway's output. Thus, full employment can be restored fairly quickly. B) a small reduction in its price will lead to a decrease in euro zone demand for Norwegian goods that is large relative to Norway's output. Thus, full employment can be restored fairly quickly. C) a small reduction in its price will lead to an increase in euro zone demand for Norwegian goods that is small relative to Norway's output. Thus, full employment can be restored fairly quickly. D) a big reduction in its price will lead to an increase in euro zone demand for Norwegian goods that is large relative to Norway's output. Thus, full employment can be restored fairly quickly. E) a big reduction in its price will lead to a decrease in euro zone demand for Norwegian goods that is small relative to Norway's output. Thus, full employment can be restored fairly quickly.
Robert must always have cream in his coffee. For Robert, the cross price elasticity of demand for coffee and cream is
A) equal to 0. B) negative. C) positive. D) impossible to determine without more information.
Beyond some minimum level of effort, it is usually expected that teamwork will have the impact of ________ relative to individual effort.
A. leaving output the same B. reducing output C. increasing output D. reducing and then increasing the output
With reference to the difference between a change in demand and a change in quantity demanded, which of the following is TRUE?
A) If a good's price goes down, then demand for the good will decrease. B) If a good's price goes down, then quantity demanded will increase. C) If demand increases, then the demand curve will shift to the left. D) If price rises and quantity demanded decreases, then the demand curve will shift to the left.