Willie Stand obtains a patent on his new invention, the bipod. After twenty years,
a. he can renew his patent
b. new entrants will begin bipod production if price exceeds average variable cost
c. new entrants will drive up the price of the bipod
d. Willie will eventually earn no more than a normal profit
e. Willie will continue to earn a positive economic profit, because entry will not affect the price of bipods
D
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Marginal cost can be defined as the change in
A. cost resulting from one less unit of production. B. benefit resulting from one more unit of production. C. benefit resulting from one less unit of production. D. cost resulting from one more unit of production.
From 1929 to 1932, the total value of the stock market:
A. more than tripled. B. decreased by nearly 90 percent. C. more than quadrupled. D. stayed the same.
In the long run, the output of a monopolistically competitive firm
a. exceeds that of an otherwise similar perfectly competitive firm b. is less than that of an otherwise similar perfectly competitive firm c. is at the point at which LRAC is minimized d. equals that of an otherwise similar perfectly competitive firm e. is less than that of an otherwise similar monopolist
Which of the following central bank policies will lower the money supply?
a. Selling foreign currency in the foreign exchange market. b. Buying government securities. c. Lowering the reserve ratio. d. All of the above. e. None of the above.