A price that discourages entry is called a
A) fair price
B) limit price
C) minimum price
D) all of these choices
B
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New firms enter a monopolistically competitive market structure in the long run if the price charged by the existing firms in the short run ________
A) exceeds the average total cost of production B) equals the average fixed cost of production C) equals the average variable cost of production D) equals the price charged in a perfectly competitive market
Consider the two statements: I. X is an inferior good. II. X exhibits Giffen's Paradox. Which of the following is true?
a. I implies II, but II does not necessarily imply I. b. II implies I, but I does not necessarily imply II. c. I and II are statements of the same phenomenon.
The principle that the opportunity cost increases as the production of one output expands along the production possibilities curve is the:
a. law of increasing opportunity costs. b. law of supply. c. law of demand. d. law of diminishing returns.
Which of the following is correct?
a. Economic development is more quantitative than economic growth. b. A country cannot achieve economic growth with a limited base of natural resources. c. Infrastructure is capital provided by the private sector. d. All of the above are true. e. All of the above are false.