A perfectly competitive industry is in long-run equilibrium. If demand for the product decreases, we can expect:
A. firms to enter the market.
B. firms to exit the market.
C. no change in the number of firms in the market.
D. There is not enough information to tell what will happen to the number of firms in the market.
Answer: B
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When the demand for money increases,
a. The money supply must rise if the Fed is targeting interest rates.. b. The money supply must fall if the Fed is targeting interest rates.. c. Interest rates must rise if the Fed is targeting the money supply. d. Both a. and c. are correct.
Which of the following would result from a technological advance in a perfectly competitive market?
a. The market demand curve will shift rightward. b. Consumers will benefit as the price declines. c. Producers will benefit as long-run profits rise. d. The market supply curve will shift leftward. e. In a constant-cost industry, the price will not change in the long run.
A pharmaceutical company develops a new drug for treating cancer. What type of market barrier has been created?
a. Licenses b. Patents c. Control of an essential resource d. Economies of scale
Export promotion is widely regarding by economists as a positive role for government policy makers to play because it is very effective at promoting economic growth
Indicate whether the statement is true or false