In the long run, profits will equal zero in a competitive market because of
A) constant returns to scale.
B) identical products being produced by all firms.
C) the availability of information.
D) free entry and exit.
D
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Which of the following will tend to result in more proven oil reserves?
A) rising oil prices B) development of oil substitutes C) conservation measures D) all of the above
Bonds with no default risk are called
A) flower bonds. B) no-risk bonds. C) default-free bonds. D) zero-risk bonds.
If a 10 percent rise in airfares leads to a 5 percent increase in total expenditures on air travel, the price elasticity of demand for air travel in this range must be
a. 2. b. elastic. c. 0.5. d. inelastic.
Starting from a long-run equilibrium, an increase in government expenditures increases output in the short run but not in the long run.
Answer the following statement true (T) or false (F)