When economic profits are present in a market,
a. firms will exit from the market.
b. new firms will enter the industry and the existing firms will expand the scale of their operation.
c. firms will raise their prices and reduce output.
d. the value of the product is less than the value of the resources required for its production.
b. new firms will enter the industry and the existing firms will expand the scale of their operation.
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The "law of demand" refers to the fact that, all other things remaining the same, when the price of a good rises
A) the demand curve shifts rightward. B) the demand curve shifts leftward. C) there is a movement down along the demand curve to a larger quantity demanded. D) there is a movement up along the demand curve to a smaller quantity demanded.
One strategic barrier that may keep new firms out of a market is
a. producing where marginal cost equals marginal revenue b. a low minimum efficient scale c. bounded markup pricing d. efficiency wages, which may make it impossible for new entrants to compete profitably e. excess capacity, which may serve as a signal to new entrants to stay away
During this century, the growth rate of real GDP in the United States has averaged approximately
What will be an ideal response?
Hot dogs and hot dog buns are complements. If the price of a hot dog falls, then Question 15 options:
A. the demand for hot dogs will increase. B. the quantity demanded of hot dogs will decrease. C. the demand for hot dog buns will increase. D. the demand for hot dog buns will decrease.