Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
If the market supply curve is given by S3, then we would expect firms to:
A. shut down in the short run.
B. exit the market in the long run.
C. enter the market in the long run.
D. neither exit nor enter the market in the long run.
Answer: B
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A. private goods B. public goods C. common goods D. toll goods
Which period was not a recession in the United States?
A) 1974-1975 B) 1990-1991 C) 1984-1985 D) 2001
An unplanned economy operating under laissez faire
a. allocates resources by market supply and demand. b. cannot respond to basic questions about production and distribution. c. shows breakdowns with frequent surpluses and shortages. d. allocates goods and services under government subsidy.
Producers of computer software are plagued with the problem of “pirating,” that is, many people copy software legally purchased by others. The industry estimates that for each legal copy of a program, there are two pirated copies in use. The industry wants strict laws for the enforcement of its “intellectual property rights,” but enforcement is obviously very difficult. Economists call this problem
A. depletability. B. externality. C. durability. D. nonexcludability.