As a firm in a monopolistically competitive market successfully differentiates its products and earns a positive economic profit, it is soon imitated by its rivals and profit of the firm falls to zero
a. True
b. False
Indicate whether the statement is true or false
True
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The fact that supermarkets, a land-intensive form of organization, have become the dominant form of grocery store in the United States suggests that there is little or no potential for input substitution in the grocery store business
Indicate whether the statement is true or false
Business conduct that is illegal per se is illegal
a. only if there is no economic rationale for it b. only if it results in a monopoly c. without regard to its economic rationale or consequences d. only if it is prohibited by the Clayton Act e. whether or not Congress has passed legislation prohibiting the practice
Fixed exchange rates give countries too much freedom over their monetary policies, thereby threatening higher rates of inflation
a. True b. False Indicate whether the statement is true or false
When the average price level in the United States, relative to the average price level in other countries, falls, this tends to
A. raise imports and exports. B. lower imports and exports. C. raise imports and lower exports. D. lower imports and raise exports.