Explain the difference between the short run and the long run in terms of the number of firms in a competitive market
In the short run, the number of firms is fixed. In the long run, the number of firms can change due to entry and exit.
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If Henry, a perfectly competitive lime grower in Southern California, can sell his limes at a price greater than his average total cost, Henry will
A) incur an economic loss. B) incur an accounting loss. C) have an incentive to shut down. D) make an economic profit. E) make zero economic profit.
If a restaurant like Buffalo Wild Wings has higher costs than a comparable Hooters restaurant, the only way it can have higher profits is if
A) the demand for its food is higher than the demand for food at Hooters. B) it sells the quantity associated with its minimum average total cost. C) it has more locations than Hooters. D) its marginal revenue is lower than the marginal revenue of Hooters.
The monetary stimulus enacted in the fall of 2001 provides support for those economists who favor
a. stable money supply growth. b. activist monetary policy. c. rules-governed monetary policy. d. fixed rates of growth for the money supply.
Taking out a mortgage to buy a condo, buying a mutual fund, and building a new factory are all examples of investment
a. True b. False Indicate whether the statement is true or false