The motivating force behind an increase in supply in a long-run adjustment to equilibrium is
a. lower prices
b. economic profits that are present in the short run
c. higher profit expectations among owners of firms in the industry, triggered by increased prices
d. normal profits witnessed by individuals outside the industry that trigger entry
e. the decreases in average cost that can be obtained through economies of scale
B
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Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart, and together they are the only two gas stations in town. Currently, they both charge $3 per gallon, and each earns a profit of $1,000. If Joe cuts his price to $2.90 and Sam continues to charge $3, then Joe's profit will be $1,350, and Sam's profit will be $500. Similarly, if Sam cuts his price to $2.90 and Joe continues to charge $3, then Sam's profit will be $1,350, and Joe's profit will be $500. If Sam and Joe both cut their price to $2.90, then they will each earn a profit of $900. You may find it easier to answer the following questions if you fill in the payoff matrix below. 
width="383" />The clear outcome of this game is that: A. neither Joe nor Sam will cut his price. B. Joe will cut his price and Sam won't. C. both Joe and Sam will cut their price. D. Sam will cut his price and Joe won't.
After much anticipation a company releases a new smartphone. The smartphone doesn't work as well as expected and lacks many of the features buyers had been expecting. The unexpectedly negative reaction to the smartphone would
a. raise the present value and the price of the corporation's stock. b. raise the present value and reduce the price of the corporation's stock. c. reduce the present value and the price of the corporation's stock. d. reduce the present value and raise the price of the corporation's stock.
Recall the Application about craft beer and the increase in the price of hops to answer the following question(s).The reason why the demand for hops increased is because hops are inputs to the production of beer, and beer demand was rising.
Answer the following statement true (T) or false (F)
Refer to the information provided in Table 2.1 below to answer the following question(s). Table 2.1?KrystalMarkWriting Poems812Writing TV Commercials24Refer to Table 2.1. For Krystal, the opportunity cost of writing four TV commercials is ________ poems.
A. 2 B. 8 C. 16 D. 32