Refer to the scenario above. How will the demand for pens faced by the existing pen manufacturers in Eduland be affected if new firms enter the industry in the long run?
A) The demand faced by the existing firms will become perfectly inelastic.
B) The demand faced by the existing firms will become perfectly elastic.
C) The demand faced by the existing firms will increase.
D) The demand faced by the existing firms will decrease.
D
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________ paid for the use of land; ________ paid for the services of labor; and ________ paid for the use of capital
A) Rent is; wages are; interest is B) Rent is; interest is; wages are C) Interest is; wages are; profit is D) Mortgages are; interest is; wages are E) Rent is; wages are; profit is
One of the major lessons learned in the chapter on experiments and quasi-experiments
A) is that there are almost no true experiments in economics and that quasi-experiments are a poor substitute. B) you should always use TSLS when estimating causal effects in quasi-experiments. C) populations are always homogeneous. D) is that the insights of experimental methods can be applied to quasi-experiments, in which special circumstances make it seem "as if" randomization has occurred.
A deadweight loss occurs in a
A) monopoly. B) perfectly competitive market. C) market in which the market clearing price of a good equals the marginal cost of producing it. D) market in which the market clearing price of a good is below the marginal cost of producing it.
A modern economy is one where: a. there is no medium of exchange
b. a single seller controls the production of all goods and services. c. every individual interacts with thousands of other individuals to receive the goods they need to survive. d. international trade does not take place.