Suppose Alexander is successful in establishing a profitable market for his vegan bakery in what is a monopolistically competitive industry. In the long run, Alexander will most likely find it ________ to remain profitable as he faces ________ competition in the vegan bakery market.
A) easier; more
B) harder; more
C) easier; less
D) harder; less
B
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One significant reason for the declining membership in unions in the U.S. is
a. more workers are entering the teaching field b. increasing employment in the industrial sector c. the structural shift of the economy toward services d. increasing cultural diversity in the workforce e. a decrease in the number of public sector employees
High barriers to entry protect the market power of existing firms and discourage the formation of firms which:
a. invest heavily in research and development activities. b. use illegal procedures to capture the market. c. are inefficiently small and cannot realize economies of scale. d. are large enough to dominate the existing firms.
Using Figure 3 below the distance between what 2 lines illustrate a recessionary output gap?
A. PAE2 to PAE3
B. PAE1 to PAE2
C. Y1 to Y2
D. Y2 to Y3
If a market is contestable, then
A. long-run economic profits are minimal due to inefficiency. B. long-run economic profits are zero. C. short-run and long-run economic profits are zero. D. positive economic profits are maximized due to the efficient production spurred by the threat of entry.