Which is true of pure competition but not of monopolistic competition?
A. There are no significant barriers to entry
B. Long-run economic profits are zero
C. There are a large number of firms in the market
D. Long-run equilibrium occurs at the minimum point on the ATC curve
D. Long-run equilibrium occurs at the minimum point on the ATC curve
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By human capital, economists mean
A) machines that replace humans. B) machines engineered to avoid operator injury. C) the accumulated skill and knowledge of humans. D) humans who perform repetitive tasks.
Most theories of comparative advantage explain trade patterns due to international differences in
A) demand conditions. B) supply conditions. C) demand and supply conditions. D) tariffs.
Sellers in a perfectly competitive market make special arrangements to deal with particular customers and stand to lose value if their relationship with those customers ends
Indicate whether the statement is true or false
A public good will:
A. be efficiently provided by the free market as long as its total benefits exceed its total costs. B. be efficiently provided by the free market as long as its marginal benefits exceed its marginal costs. C. be provided in less than efficient quantities by the free market. D. be provided in efficient quantities by voluntary contributions.