Based on the above scenario, is the industry in the long run equilibrium?
a. yes, because all firms are producing at P=MR=MC
b. no, because the price is still greater than the minimum average total cost.
c. cannot answer because need information on MR
d. cannot answer unless we see that the market lets some firms enter and/or some firms exit.
b
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Assume that the following are the predicted inflation rates in these countries for the year: 2% for the United States, 3% for Canada; 4% for Mexico, and 5% for Brazil
According to the purchasing power parity and everything else held constant, which of the following would we expect to happen? A) The Brazilian real will depreciate against the U.S. dollar. B) The Mexican peso will depreciate against the Brazilian real. C) The Canadian dollar will depreciate against the Mexican peso. D) The U.S. dollar will depreciate against the Canadian dollar.
If the demand curve is given by Q = a + bp, then a is
A) negative. B) the quantity demanded when price is zero. C) the slope of the demand curve. D) measured in money.
In the above table, the marginal propensity to save when disposable income changes from $1,000 to $2,000 is
A) 0.1. B) 0.2. C) 0.8. D) -0.2.
Three of the four events described below might reasonably be expected to shift the demand curve for Tacos to a new position. One would not shift the demand curve. The single exception is:
a. a change in people's tastes with respect to Tacos. b. an increase in the money income of beef consumers. c. a widespread advertising campaign undertaken by the producers of a product competitive with Tacos. d. a fall in the price of Tacos.