Lilly is the price-taking owner of an apple orchard. The price of apples is high enough that Lilly is earning positive economic profits. In the long run, Lilly should expect:
Select one:
a. higher apple prices due to the exit of existing firms.
b. lower apple prices due to the exit of existing firms.
c. higher apple prices due to the entry of new firms.
d. lower apple prices due to the entry of new firms.
d. lower apple prices due to the entry of new firms.
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If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning negative economic profits, the firm should anticipate ________.
A) the market equilibrium price to decrease B) the market supply to increase C) new firms to enter the market D) the market equilibrium price to increase
Per capita income growth is derived by dividing a country's income growth by its
a. money growth b. production growth c. productivity growth d. population growth e. output growth
Ellen deposited $500 into an account and two years later she had $561.80 in the account. What interest rate was paid on Ellen's deposit?
a. 4.88 percent b. 6.00 percent c. 12.36 percent d. None of the above is correct.
A market shortage occurs when:
A.) The quantity demanded is less than the quantity supplied at a given price. B.) The market price is below equilibrium. C.) Sellers produce a lot of the product and consumers like it a lot. D.) A new product is introduced at the equilibrium price.