All of the following statements apply to a purely competitive market in the long run, except:
A. In the long run, all inputs are variable in quantity
B. Firms can expand their plant capacities in the long run
C. Total fixed costs remain constant even when output expands in the long run
D. Firms may enter or leave the industry in the long run
C. Total fixed costs remain constant even when output expands in the long run
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Physical objects are rival in the sense that ________
A) they are necessarily in opposition to one another B) they are nontrivial C) when they are used in one activity, they cannot be used in another D) some countries possess natural resources, e.g. oil, while some do not
Which of the following is the foundation for success for a company facing competition
a. Create an advantage over the competition b. Protect the advantage created over the competition c. Create and protect advantages over the competition d. None of the above
If expected inflation is constant, then when the nominal interest rate falls, the real interest rate
a. falls by more than the change in the nominal interest rate. b. falls by the change in the nominal interest rate. c. rises by the change in the nominal interest rate. d. rises by more than the change in the nominal interest rate.
The economic impact of automatic stabilizers during recessionary periods is to
A. increase unemployment. B. decrease money growth. C. increase taxes. D. increase government spending.