Entry into a monopolistic competitive industry
A) is easy.
B) is hard.
C) requires governmental approval.
D) requires collusion.
A
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Why does the free-rider problem occur in the debt market?
What will be an ideal response?
Suppose that the only maker of a particular type of horse hair clothing exits the industry because demand is too low. The correct analysis of this situation is that
a. the producer's decision is irrational, since monopolies are not limited by the demand curve b. the producer's decision is irrational, since monopolies never go out of business c. the producer's decision is irrational, since it could simply raise the price d. the price received by the producer was lower than the marginal cost in the long run e. the price received by the producer was lower than the average total cost in the long run
The real exchange rate generally has ______ relationship with aggregate expenditure.
A. a negative B. a positive C. no D. a constant
An economy operating to the left of its LRAS is operating ______.
a. inside its production possibilities curve b. outside its production possibilities curve c. on its production possibilities curve d. without a production possibilities curve