In a perfectly competitive market, if P > ATC in the short run, there is apt to be
A) entry of new firms into the market.
B) an accounting loss for existing firms.
C) an inward shift in the industry supply curve.
D) an upward pressure on price.
Answer: A
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In classical IS—LM analysis, the effects of a decline in desired investment include
A) a decline in output. B) an increase in the price level. C) a decline in the real interest rate. D) an increase in unemployment.
If regulations create barriers to entry in an industry, the result can be _____
a. efficiency b. monopoly c. monopsony d. higher output
Which of the following conditions hold true for both the perfectly competitive firm and the monopoly at the profit-maximizing output level?
A) MR = P B) MC = ATC C) MC = P D) MR = MC
Large increases in agricultural productivity were not the primary reasons for migrating to which area of the nation during the antebellum period?
a. Illinois and Wisconsin b. Indiana and Ohio c. The far west d. Texas and Mississippi