Assume that a perfectly competitive market is in long-run equilibrium. Suppose as a result of a health hazard associated with the industry's product, demand decreases drastically. What is the immediate result of this event?
A) The typical firm's average total cost curve shifts downward.
B) The typical firm's marginal cost curve shifts to the left.
C) The market price falls and the typical firm suffers an economic loss.
D) The market supply increases to offset the fall in demand.
C
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If the economy is above full employment, there is ________ gap, and as the economy adjusts toward full employment, the price level ________
A) a recessionary; rises B) an inflationary; falls C) a recessionary; falls D) an inflationary; does not change E) an inflationary; rises
A decrease in the reserve requirement would:
A) decrease excess reserves and reflect an expansionary monetary policy. B) decrease excess reserves and reflect a contractionary monetary policy. C) increase excess reserves and reflect an expansionary monetary policy. D) increase excess reserves and reflect a contractionary monetary policy.
Oligopoly firms are guaranteed economic profits in the long run
a. True b. False Indicate whether the statement is true or false
Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. What is the probability of drawing a red marble in each game?
A. 10 percent in the first game and 25 percent in the second game B. 25 percent in both games C. 25 percent in the first game and 10 percent in the second game D. 10 percent in both games