Which of the following is an example of a barrier to entry?
(A) Government deregulation
(B) Low start-up costs
(C) Perfect competition
(D) High start-up costs
Ans: (D) High start-up costs
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The above figure shows a graph of a market for pizzas in a large town. At a price of $10, the market
A) is not in equilibrium. B) has excess supply. C) does not have excess demand. D) All of the above.
If the wage rates in Canada are lower than in the United States,
a. workers in the United States will want to go to Canada and Canadian businesses will want to locate in the United States b. workers in Canada will want to go to the United States and businesses in the United States will want to locate in Canada c. unfair international competition is taking place d. goods will be more expensive in Canada e. the wage differentials will become wider over time
Suppose a profit-maximizing firm in a perfectly competitive market is collecting $1,999 in total revenues. If the total cost of its fixed factors of production falls from $500 to $400, the firm will:
A. lower its price. B. earn smaller profits or larger losses. C. expand its output. D. earn greater profits or smaller losses.
The demand for loanable funds is downward sloping because the ________ the interest rate, the ________ the number of profitable investment projects a firm can undertake, and the ________ the quantity demanded of loanable funds
A) lower; greater; greater B) lower; smaller; greater C) greater; greater; greater D) greater; smaller; greater