Ans: D) that the firms in the industry would earn normal economic profits in the long run, as the higher production costs were passed along to consumers in the form of higher prices.
If firms in a price-taker industry were forced to install antipollution devices that increased their production costs, we should expect
A) the cost curves for the firms in this industry to shift downward.
B) the market price of the product to decrease.
C) that the firms in the industry would suffer long-run economic losses.
D) that the firms in the industry would earn normal economic profits in the long run, as the higher production costs were passed along to consumers in the form of higher prices.
Economics
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What happens to wage and rental rate according to the Heckscher-Ohlin model if the price of a good that uses capital extensively increases by 6%?
a. Both wage and rental rate decrease by 6%. b. Both wage and rental rate increase by less than 6%. c. Both wage and rental rate increase by more than 6%. d. Wage rate increases by more than 6% but rental rate decreases. e. Wage rate decreases but rental rate increases more than 6%.
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The slope of an isocost line ________ and equals the negative of ________
A) increases as we move down the line; the ratio of input prices B) is constant; the ratio of input prices C) is constant; the ratio of the marginal products D) decreases as we move down the line; the ratio of the marginal products
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Under the Exchange Rate Mechanism of the European Monetary System, when the German mark depreciated below its lower limit against the British pound, the German central bank was required to buy ________ and sell ________,
thereby ________ international reserves. A) pounds; marks; losing B) pounds; marks; gaining C) marks; pounds; gaining D) marks; pounds; losing
Economics
Fuchs has suggested defining poverty as income below one-half of the national median
Indicate whether the statement is true or false
Economics