Assume the market for ball bearings is purely competitive. Currently, each of the firms in this market is making a positive level of economic profits. In the long run, we can expect the market:
A. supply to increase.
B. supply to decrease.
C. demand to decrease.
D. demand to increase.
Answer: A
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In the United States, the primary standards established for identified criteria pollutants
a. are known as the NESHAP b. are applicable only to mobile sources c. are intended to protect public welfare d. are motivated solely by expected benefits with no consideration for economic feasibility
The mean (average) income of 25 employees working in a firm is $1,754 per month. What is the total income of all the employees?
A) $40,000 B) $43,850 C) $56,225 D) $63,950
Which of the following leads a good to have a high elasticity of supply? I. The good must be produced using unique resources. II. The good is produced using commonly available resources
A) I only B) II only C) I and II D) neither I nor II
All of the following occur whenever a government taxes a product except
A) the quantity consumed of that product falls. B) the price of that product rises. C) there will be no excess burden if the government's tax revenue is sufficiently large to offset the deadweight loss. D) the marginal benefit of the last unit sold exceeds the marginal cost of producing it.