Suppose you operate in a monopolistically competitive market. If you sell your good at a price of $10 and your average cost of production is $8:
A. your market is in long-run equilibrium.
B. we can expect firms to enter your market and sell a similar good in the long run.
C. there will be no incentive for competing firms to enter your market in the long run.
D. you cannot be in short-run equilibrium.
Answer: B
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a. profit curve b. explicit cost curve c. opportunity cost curve d. production curve e. planning curve
Suppose interest rates in foreign countries increase relative to the U.S. interest rate. As a result, there is ________ the demand curve for dollars
A) a downward movement along B) a leftward shift of C) a rightward shift of D) an upward movement along E) neither a movement along nor a shift of
Relatively high interest rates in the United States contributes to a strong U.S. dollar (less dollars per another currency) and this may lead to a deficit on the U.S. current account
Indicate whether the statement is true or false
Citizens can consume more of everything in a(n)
A. open economy. B. closed economy. C. economy with many citizens. D. autarky.