When profits exist in a competitive price-searcher market,
a. rival firms will be attracted into the market.
b. high barriers to entry will prevent rival firms from entering the market.
c. product differentiation will prevent new firms from making a profit.
d. the profits will persist because the firms face a downward-sloping demand curve.
A
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A vast majority of mandatory federal spending is devoted to
A) entitlement programs. B) national defense. C) interest on the national debt. D) foreign aid.
Consumption spending includes spending on durable goods, nondurable goods, and services
Indicate whether the statement is true or false
The demand for Honda Accords is probably
A) inelastic but more elastic than the demand for automobiles. B) elastic and more elastic than the demand for automobiles. C) inelastic and less elastic than the demand for automobiles. D) elastic but less elastic than the demand for automobiles.
Which of the following statements about the idea that people are rational is? correct?
A. The idea assumes that consumers and firms use all available information as they act to achieve their goals.
B. The idea assumes that consumers and firms take into account the costs of their actions but ignore the benefits.
C. The idea assumes that consumers and firms take into account the benefits of their actions but ignore the costs.
D. The idea assumes that consumers and firms always make correct decisions.