A firm that is earning positive profits in the short run has an incentive to ________ its scale of operation in the long run.
A. encourage another firm to expand
B. expand
C. contract
D. not change
Answer: B
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Tickets to the Michigan-Notre Dame football game are usually sold out in advance of game day. This suggests that
a. the price of the tickets must be very high or else people would not consider them valuable
b. the price is set below the equilibrium level
c. the football stadium is relatively small
d. everyone who attends the game will enjoy it
e. the price is determined primarily by the fixed supply of tickets
Other things constant, if domestic consumers purchase fewer foreign goods at each level of GDP, in the short run
A. foreign countries' GDP will rise. B. GDP will fall. C. GDP will rise. D. there will be no change in GDP in this country.
What type of profit can a firm in monopolistic competition earn in the long run? Explain your answer
What will be an ideal response?
After an increase in the demand for construction workers, the market will attain its new long-run equilibrium faster if
A. people ignore the shortage in the short run. B. wages are flexible. C. wages are inflexible, forcing new people to enter the market. D. unions restrict the number of new construction workers.