As a result of firms leaving an industry, we would expect that:
a. economic profits are positive
b. as a result, economic losses are falling.
c. as a result, economic losses are rising.
d. both (a) and (b) are true.
b
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A perfectly competitive firm's short-run supply is infinite at the market price
a. True b. False Indicate whether the statement is true or false
Which would be considered an investment according to economists?
a. The selling of IBM corporate bonds b. The purchase of a new machine by Ford c. The purchase of stock in MacDonald's d. The buying of shares of Janus mutual funds
If exports are $10 trillion and imports are $10.5 trillion, adding net exports to the aggregate expenditures (AE) line that includes consumption, investment, and government spending will cause the AE line to:
A. start at the same point on the vertical axis but will have a flatter slope. B. start at the same point on the vertical axis but will have a steeper slope. C. shift up by $0.5 trillion and the new line will be parallel to the original line. D. shift down by $0.5 trillion and the new line will be parallel to the original line.
In which of the following market structures do you find no barriers to entry?
A. perfect competition B. monopolistic competition C. monopoly D. Both perfect competition and monopolistic competition are correct