What are the effects on a market when there is entry?
What will be an ideal response?
Market price usually falls, economic profit is reduced, and if there is a license required to enter the business, its value usually falls.
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If the price level for the last three months has been 112, 125, and 126, we would say
A) inflation has been constant over the three months. B) inflation was more rapid between the first and second month than between the second and third month. C) inflation was less rapid between the first and second month than between the second and third month. D) inflation has steadily increased over the three months.
Which statement best defines efficiency?
a. when it becomes possible to benefit at least one party without imposing costs on others b. when it is impossible to improve the situation of one party without imposing a cost on another c. the amount that a seller is paid for a good minus the seller’s actual cost d. the amount that individuals would have been willing to pay, minus the amount that they actually paid
The money multiplier equals 1/(1 - R), where R represents the reserve ratio
a. True b. False Indicate whether the statement is true or false
Inefficient use of resources is shown on the production possibilities curve
A) by an inward shifting of the curve. B) by a point inside the curve. C) by a point near the top of the curve. D) by a point outside the curve.