Assuming the economy in the graph shown is currently at equilibrium A, we can conclude:
A. the economy is in a recession.
B. the economy is producing less than its potential level of output.
C. there must be unemployment of resources.
D. All of these are true.
D. All of these are true.
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Which of the following is a way to deter entry?
A) increase costs through legislation that affects only new entrants B) raise switching costs for customers that use your products C) obtain a patent so that others must license your invention D) All of the above.
Suppose local educators argue that teachers' salaries are too low. At the same time it is said that the school district received 750 applications for 5 new openings. Are salaries too low? Explain
What will be an ideal response?
For a perfectly competitive firm that should continue to operate in the short run, loss is minimized where
a. MR is maximized b. MR = MC c. P < MC d. MR < MC e. MR > ATC
Firms serve similar functions to
A) courts. B) governments. C) markets. D) all of these choices.