In a perfectly competitive market, the process of entry and exit will end when firms face
a. marginal revenue equal to long-run average total cost.
b. total revenue equal to average total cost.
c. average revenue greater than marginal cost.
d. accounting profits equal to zero.
a
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Which of the following is a reason why Fed policy might be ineffective?
A. The wealth effect B. Crowding out C. The liquidity trap D. The foreign substitution effect
Pharmaceutical companies receive patents as an exclusive right to produce a drug. This results in
a. normal profits on the patented drug. b. monopoly status in the production of the drug. c. lower prices for patients requiring the drug. d. orphan drug status. e. fewer new chemical compounds discovered.
An increase in the price of cameras results in a decrease in the demand for film. The two products are
a. complements. b. unrelated. c. demand elastic d. substitutes
An industry comprised of a small number of firms, each of which considers the potential reactions of its rivals in making price-output decisions, is called:
A. monopolistic competition. B. oligopoly. C. pure monopoly. D. pure competition.