A single firm in a contestable market is limited in the amount of economic profit it can earn because there
A) are barriers to entry.
B) are no barriers to entry.
C) is collusion.
D) are government regulations limiting its profit.
B
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This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, what is the world price?
A. $45 B. $11 C. $23 D. $16
The nominal interest rate is the sum of the real interest rate and the premium paid to the lender to offset the expected rate of inflation.
Answer the following statement true (T) or false (F)
Recall the Application about allegations that the makers of branded drugs made deals with generic drug makers once the patents expired on branded drugs to answer the following question(s).Recall the Application. When a patent ends and generic drugs are introduced, there is:
A. downward pressure on the price of the patent version of the drug. B. upward pressure on the price of the patent version of the drug. C. no pressure on the price of the patent version of the drug. D. no demand for the patent version of the drug.
Which statement is false?
A. When two countries trade, both gain from the trade. B. In international trade some countries are winners and others are losers. C. For most of the 20th century we had a positive balance of trade. D. None of these statements are false.