What is one reason firms might lobby to prevent entry into their market?
A) The long run equilibrium might be characterized by P = MC = ATC.
B) The long run equilibrium might be characterized by P = MC < ATC.
C) The long run equilibrium might be characterized by P > MC = ATC.
D) The long run equilibrium might be characterized by P = MC > ATC.
D
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In choice sets, intertemporal budget constraints illustrate consumption trade-offs over time.
Answer the following statement true (T) or false (F)
According to the article, ________ is expected to increase and add to China's ________ component of GDP
A) retail sales; consumption B) retail sales; investment C) rental income; investment D) rental income; exports
Why was the stock market crash of 1929 a disaster for the economy?
(a) Through the "wealth effect," investors lost paper wealth and consequently reduced their spending on goods and services. This led to cutbacks in production and jobs. (b) Businessmen became pessimistic about the future and reduced spending on plants and equipment, thus causing reduced production and increased layoffs in the capital-goods sector of the economy. (c) The crash revealed a flawed structure of credit and weak system of banks and other financial institutions in the U.S. (d) All of the above are correct
Figure 14.1 represents the market for used bikes. Suppose buyers are willing to pay $200 for a plum (high-quality) used bike and $50 for a lemon (low-quality) used bike. If buyers have pessimistic expectations about the used bikes in the market, what number of used bikes sold will actually be lemons (low quality)?
A. 8 B. 12 C. 16 D. 22