In a perfectly competitive market profit attracts entry
a. True
b. False
A
You might also like to view...
Survivability in a perfectly competitive world requires that
A) firms minimize average total cost. B) firms produce new and different products. C) firms maximize profit. D) firms maximize revenue.
The real exchange rate is the nominal exchange rate, defined as foreign currency per dollar, times
a. U.S. prices minus foreign prices. b. U.S. prices divided by foreign prices. c. foreign prices divided by U.S. prices. d. None of the above is correct.
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Typically, the most important determinant of private investment in an economy is
A) the inflow of foreign investment. B) the size of the capital account surplus. C) the size of the current account deficit. D) the amount of domestic savings.