The monopolistically competitive firm earns zero economic profit in the long run.
Answer the following statement true (T) or false (F)
True
Although each firm has some control over its own pricing decisions, entry-induced leftward shifts of the demand curve facing the firm will ultimately eliminate economic profits.
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Countries import goods in which they have:
a. an absolute advantage. b. a comparative advantage. c. a reputation for good product quality. d. a comparative disadvantage. e. a surplus domestic production.
If a good that generates positive externalities is priced to internalize the externality, then its price will __?__ and its output will __?__
The total market value of production in an economy must equal total:
A. profits. B. spending on final goods and services. C. consumption. D. revenues from all transactions.
Economic theory supports the view that increasing the minimum wage will
A. increase the employment of teenagers. B. increase the number of monopsony firms. C. decrease the employment of unionized labor. D. decrease the employment of teenagers.