When firms have an incentive to exit a competitive market, their exit will
a. lower the market price.
b. necessarily raise the costs for the firms that remain in the market.
c. raise the profits of the firms that remain in the market.
d. shift the demand for the product to the left.
c
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At an equilibrium price for gasoline,
A. everyone who is willing and able to purchase gasoline at that price can do so. B. surpluses are inevitable. C. market forces will eventually change the quantities demanded and supplied. D. suppliers must be using the most efficient oil-drilling equipment available.
A monopoly creates a deadweight loss because the monopoly
A) sets a price that is too low. B) makes a normal profit. C) does not maximize profit. D) produces less than the efficient quantity. E) produces more than the efficient quantity.
Which of the following financial intermediaries is NOT a depository institution?
A) a savings and loan association B) a commercial bank C) a credit union D) a finance company
Foreign exchange rates are
A. price at which purchases and sales of foreign goods take place. B. movement of goods and services from one country to another. C. the price of one currency in terms of a second currency. D. differences between exports and imports.