Refer to the above figure. As more and more firms are able to and actually do enter the industry, the demand curve of each firm and its marginal revenue curve
A. will become upward sloping.
B. will shift inward until the demand curve is tangent to the average total cost curve.
C. will become vertical.
D. None of these will occur.
Answer: B
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What weakness in the economic structures of Asian countries contributed to the severe financial crisis that Asian economies experienced in 1997?
A) Productivity: It increased rapidly and the countries were victims of their own success B) Banking regulation: Banks were excessively regulated, which reduced profits. C) Legal Framework: The system dealt unsuccessfully with companies in financial trouble D) Natural Resources: Countries' lack of natural resources and failure to explore developing industries accumulated and led to the crisis. E) High Taxes: High rates of taxation resulted in a reliance on imports.
The Coase theorem will hold only if:
A. people can make enforceable agreements. B. there are no transactions costs. C. Both of these must hold true. D. Neither of these must hold true.
Which of the following is not an advantage to an insurance company of insuring a large group of people for health insurance?
A) When all group members pay the premium, the problem of adverse selection is reduced.
B) The characteristics of a large group are likely to reflect those of the entire population.
C) When all group members pay the premium, the problem of moral hazard is reduced.
D) It is easier to accurately predict the number of claims for a group than for an individual.
What is the real GDP after four years if Country A's average annual growth rate is 8.6 percent and the initial real GDP was $2,756.0 million?
A. $3,833.5 million B. $3,250.4 million C. $2,993.0 million D. $1,077.5 million