Consider an unregulated monopoly in Figure 8.13. Suppose that a second firm enters the market. As a result, if the demand curve facing each firm lies entirely below the long-run average cost curve:
A. only one of the two firms can make a positive economic profit.
B. both the first and the second firm make positive economic profits.
C. neither firm makes a positive economic profit.
D. There is not sufficient information.
Answer: C
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Hyperinflations are caused by
a. persistant falls in aggregate supply. b. increases in poverty levels. c. high levels of money growth over sustained periods of time. d. falls in the velocity of money.
Which of the following statements is correct?
a. The classical aggregate AD curve can be shifted by monetary and non-monetary factors. b. The classical AS schedule is horizontal while the Keynesian aggregate AS schedule is vertical. c. The Keynesian AD curve only shifts in response to monetary factors. d. The classical aggregate supply schedule slopes upward to the right while the Keynesian aggregate supply schedule is vertical. e. none of the above are correct.
The U.S. desire for foreign currency represents
A. A point of disequilibrium in the foreign exchange market. B. A supply of U.S. dollars. C. A demand for U.S. dollars. D. The foreign demand for U.S. exports.
Which of the following best describes a situation where research is considered appropriable?
A) research that is well suited to its commercial purpose B) research that is easily copied by another firm C) research that translates into many new products D) all of the above E) none of the above