In a perfectly competitive market, if market price is lower than the average total cost of production:
A) new firms will enter the market.
B) existing firms will leave the market.
C) all existing firms will earn positive economic profits.
D) all existing firms will earn zero economic profits.
B
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Economic growth can be depicted as
A) an outward shift on the production possibilities curve. B) a movement up on the production possibilities curve. C) a movement down on the production possibilities curve. D) an inward shift on the production possibilities curve.
There are several competing models of the business cycle because
A) none currently captures all facets of the business cycle. B) they are all rooted in different philosophical traditions. C) different shocks need different models. D) they depend on the type of policy that is adopted.
One of the changes in the welfare system of the United States that occurred in 1996 was a move to block grants for states. What advantage(s) might a block grant system allow?
What will be an ideal response?
In the long run, a monopolistic competitor: a. earns a normal rate of return
b. sells a level of output at which marginal revenue is less than price. c. sells a level of output at which marginal revenue equals marginal cost. d. is characterized by all of the above.