Which characteristic of perfect competition ensures that economic profit will be zero in the long run?
a. each firm's output is small in relation to total market supply
b. buyers and sellers are fully informed about the price and availability of all resources and products
c. the product is homogeneous
d. there is freedom of entry and exit in the market
e. firms are price takers
D
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Refer to Figure 18-6. If area X = 2,060, area Y = 240, and area Z = 2,700, calculate the Gini coefficient for Islandia
A) 0.41 B) 0.45 C) 0.70 D) 0.76
For a 3-year simple loan of $10,000 at 10 percent, the amount to be repaid is
A) $10,030. B) $10,300. C) $13,000. D) $13,310.
A more efficient means of processing tree bark to produce an anticancer drug is discovered. As a result, the supply curve for the drug will:
a. shift to the right, increasing the price of the drug. b. shift to the left, increasing the price of the drug. c. shift to the right, decreasing the price of the drug. d. shift to the left, decreasing the price of the drug.
Points lying ___________ the production possibilities curve are attainable, reflecting less total output than can be produced.
a. on b. inside c. beyond d. along