Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make excess profits in the long run?
A. the assumption that wool producers in the industry do not ?differentiate? their products
B. the fact that wool producers are ?price takers?
C. the fact that the demand curve facing each wool producer is perfectly elastic
D. There is free entry into the wool industry.
Answer: D
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Refer to the scenario above. A firm producing Good Y will ________
A) earn economic profits if it charges a price of 120 B) incur losses if it charges a price of $200 C) earn zero economic profits if it charges a price of $170 D) shut down production if price falls below $200
A dominant strategy
A) is one that a firm is forced into following by government policy. B) involves colluding with rivals to maximize joint profits. C) involves deciding what to do after all rivals have chosen their own strategies. D) is one that is the best for a firm, no matter what strategies other firms use.
Since 1960, countries in Africa have grown at rates ________ those of the main industrial countries
A) far below B) far above C) about the same D) slightly below E) slightly above
Risk-sharing forms of compensation are beneficial if employee are
A) risk preferring. B) risk neutral. C) risk averse. D) prefer more to less.