When the firms in a perfectly competitive market are incurring economic losses, some of the firms will exit the market, causing the supply curve to shift left and market price to rise until losses incurred by the remaining firms are eliminated

Indicate whether the statement is true or false


TRUE

Economics

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If the price of used cars rises, then the CPI will ________ and the GDP deflator will ________

A) increase; increase B) increase; not change C) not change; increase D) not change; not change E) increase; increase by more than the CPI

Economics

The manager of Happy Chickens, an organic egg producer, should avoid all of the following topics except which one when speaking to managers of Best Eggs, a competitor firm?

A) Happy Chickens' intent to bid on a large government contract to supply eggs to public schools B) forthcoming changes in Happy Chickens' pricing policies C) Happy Chickens' planned production amounts D) a recent medical report documenting the health benefits from eggs

Economics

In general, pollution exists if

A) people are unconcerned about the hazards associated with pollution. B) there are poorly defined private property rights. C) there are poorly defined common property rights. D) profit-making activity is taken to an extreme.

Economics

An increase in the expected future price level: a. Shifts both SRAS and LRAS to the left

b. Shifts both SRAS and LRAS to the right. c. Shifts SRAS left but leaves LRAS unchanged. d. Shifts SRAS right but leaves LRAS unchanged.

Economics