A decline in demand in a competitive industry will result in
a. a decrease in equilibrium price
b. a decline in the number of firms in the industry
c. economic losses for some firms in the industry
d. a decline in the equilibrium quantity
e. all of the above
D
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Economists use different definitions of money because
A) deposits can be domestic or international. B) deposits may be held at banks or savings and loans. C) it is not always clear which assets are used primarily as money. D) there are differences in the frequency with which depositors use their accounts.
The long run outcome of the monopolistically competitive firm:
A. is not efficient. B. does not maximize profits. C. is the same as the short-run outcome. D. maximizes total surplus.
Two variables are said to be negatively correlated if their values
A. tend to move in opposite directions. B. tend to move in the same direction. C. are always negative. D. only decrease but never increase.
A cost center can be asked to achieve one of two typical objectives. A cost center can either minimize costs for a given output or it can:
A. maximize revenue for a given price. B. maximize output for a given budget. C. minimize output for a given budget. D. maximize returns for a given budget.