In competitive price-searcher markets, short-run economic profits will lead to
a. long-run economic profits.
b. the exit of firms from the market and the eventual restoration of zero long-run economic profits.
c. the entry of additional firms into the market and the eventual restoration of zero long-run economic profits.
d. the entry of additional firms into the market, which increases the demand for the product of each firm in the market.
C
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Firms do not change prices frequently because:
A. it is costly to do so. B. customers will refuse to patronize firms that change prices frequently. C. it is easier to change the quantity of capital used in production. D. there are legal prohibitions against doing so.
In a pure coordination game, Nash equilibria exist at every outcome where the players successfully coordinate
Indicate whether the statement is true or false
Refer to the table above. If the market for notebooks is perfectly competitive, the equilibrium price is:
A) $2. B) $3. C) $4. D) $5.
If the marginal propensity to consume is 0.80, the value of the spending multiplier will be 5
a. True b. False Indicate whether the statement is true or false