When faced with an economic loss, a competitive firm will exit the industry in the long run
a. True
b. False
Indicate whether the statement is true or false
True
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For a firm in monopolistic competition to undertake product development, the marginal cost of the development must be ________ the marginal benefit of the development to consumers
A) greater than B) less than C) not comparable to D) equal to or less than E) None of the above because a monopolistically competitive firm undertakes product development if the marginal cost of the development is less than or equal to the marginal revenue to the firm from the development.
Suppose roses are currently selling for $30 per dozen, but the equilibrium price of roses is $20 per dozen. We would expect a
a. shortage to exist and the market price of roses to increase. b. shortage to exist and the market price of roses to decrease. c. surplus to exist and the market price of roses to increase. d. surplus to exist and the market price of roses to decrease.
Increases in the government-imposed minimum wage tend to increase unemployment among unskilled workers
a. True b. False
Refer to the table for a fictional economy. The changes in the budget conditions between 2001 and 2002 best reflect a(n):
A. recession.
B. expansionary fiscal policy.
C. tax increase.
D. contractionary fiscal policy.