Regarding fixed costs of entry
A) both incumbents and potential entrants are affected by them.
B) potential entrants are affected by them while incumbents are not.
C) neither incumbents nor potential entrants consider them.
D) incumbent's decisions are affected by them, while the potential entrant ignores them.
B
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As a result of the Fed's actions during the 2008 financial crisis and banks' lending policies,
A) the M2 money multiplier has fallen from about 9 to about 4. B) the M2 money multiplier more than doubled. C) the monetary base decreased by 50 percent. D) the ratio of currency to M2 deposits more than doubled. E) the reserve requirement ratio increased.
________ is the market structure in which there are a few rival firms
A) Perfect competition B) Monopolistic competition C) Monopoly D) Oligopoly
The law of diminishing marginal utility implies that
A. supply curves always slope upward and to the right. B. a consumer will always buy positive amounts of all goods. C. demand curves always slope downward and to the right. D. total utility will always increase by an increasing amount as consumption increases.
In a move to free the economy from unnecessary regulation, Congress passes legislation to remove sugar price supports. What would most likely happen to the number of producers of sugar?
A. It would decrease, because sugar prices would fall. B. It would decrease, because sugar prices would rise. C. It would increase, because sugar prices would fall. D. It would increase, because sugar prices would rise.