In the short run
a. new firms may enter an industry.
b. existing firms may change the quantity they are supplying.
c. price and quantity supplied are absolutely fixed.
d. quantity supplied is absolutely fixed.
b
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According to this Application, international statistics show that the developing countries are ________ and the developed countries are ________
A) creditors; creditors B) creditors; debtors C) debtors; debtors D) debtors; creditors
If a perfectly competitive firm shuts down in the short run, its variable cost equals zero
a. True b. False
There is an indirect relationship in the short run between actual price level and real GDP
Indicate whether the statement is true or false
Kahneman and Tversky are correct about "mental accounts," household budgeting
A. should have no effect on spending. B. should help families cut back on spending. C. will encourage families to earn more money than they would if they did not budget. D. leads families to spend more than if they did not budget.