Which of the following scenarios does not illustrate a long-run adjustment?
A) A local Starbucks hires two new employees.
B) Three firms leave the retail clothing industry.
C) Ten new vineyards are opened in the U.S.
D) Honda Jet builds a new assembly plant in Greensboro, NC.
Answer: A) A local Starbucks hires two new employees.
You might also like to view...
The slope of the demand curve for a normal good must be positive
a. True b. False
Which of the following is not a characteristic of a public good?
a. It requires resources to produce. b. It is not diminished or depreciated as additional people consume the good. c. Its benefits cannot be withheld from anyone. d. It is a free good. e. It generates value (benefits) to more than one person.
Revenues when a firm engages in peak-load pricing based on the figure below will be: 
A. (P4 × Q3). B. (P1 × Q2) + (P2 × Q3). C. (P3 × Q1) + (P4 × Q3). D. (P1 × Q1) + (P4 × Q3).
In the long run, monopolistically competitive firms earn zero economic profits.
Answer the following statement true (T) or false (F)