Assume that a perfectly competitive constant-cost industry is in long-run equilibrium when market demand suddenly decreases. Which of the following statements is incorrect?
a. Existing firms will start to suffer short-run losses
b. Existing firms will shut down in the short run if average variable cost exceeds average revenue at all output levels
c. Some firms will leave the industry in the long run
d. The market supply curve will shift to the right in the long run
e. Any short-run losses will be eliminated in the long run
D
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Which of the following is not directly counted in GDP?
A) investment expenditures B) consumer goods C) government purchases D) intermediate goods
If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant, can it still keep the exchange rate fixed at ? Please explain
What will be an ideal response?
If a monopolist increases output from 14 to 15 by lowering its price from $32 to $31, marginal revenue is:
A. $465. B. $448. C. $17. D. $1.
The __________________ traces the flow of money, resources, and goods and services through the economy.
Fill in the blank(s) with the appropriate word(s).