If there are short-run losses in a perfectly competitive industry, in the long run some firms will __________ and the industry-wide price will ________.
Fill in the blank(s) with the appropriate word(s).
exit the industry; rise
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All the costs of a transaction are referred to as
A) transfer costs. B) transactions costs. C) marketing expenditures. D) accounting costs.
The Law of Increasing Cost is based upon which of the following?
A. If units of a resource are added to a fixed proportion of other resources, eventually marginal output will decline. B. Economies of scale eventually outweigh diseconomies of scale. C. Resources become more suitable for use in the production process as the output of one good expands. D. All of the choices are true.
If the United States has a $300 billion trade deficit, then there must be:
A. no capital inflows or capital outflows. B. net capital outflows of $300 billion. C. net capital inflows of $300 billion. D. net capital inflows of -$300 billion.
What is marginal factor cost? How is it related to the supply curve of an input?
What will be an ideal response?