When new entrants into a competitive market have higher costs than existing firms,
a. accounting profits will be the primary determinant of entry into the market.
b. sunk costs become an important determinant of the short-run entry strategy.
c. market price will rise.
d. long-run supply is constant.
c
You might also like to view...
Use the following table to answer the next question.YearUnemployment Rate (%)Inflation Rate (%)14.03.024.52.535.02.045.53.056.04.5Consider years 1, 2, and 3. Based on this data, the Phillips curve is ________.
A. upward sloping B. vertical C. of indeterminate slope D. downward sloping
As long as the practice does not restrict competition, he European Union competition law considers all of the following permissible except which one?
A) resale price maintenance B) exclusive dealing contracts C) price discrimination D) tying contracts
When you buy a corporate bond, you are
A) borrowing funds from the corporation. B) lending funds to the corporation. C) selling an ownership right in the corporation. D) acquiring an ownership right in the corporation. E) b and d
The aggregate demand curve slopes:
A. downward, like individual supply curves. B. upward, like individual supply curves. C. downward, like individual demand curves. D. upward, like individual demand curves.