In the long run, the price in this market will be 
A. lower than P1.
B. P1.
C. higher than P1.
D. We need more information in order to answer
Answer: A
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Speculators are primarily interested in
A) betting on anticipated changes in prices. B) reducing their exposure to the risk of price fluctuations. C) increasing market liquidity. D) reducing the spread between bid and ask prices on bonds.
According to the text, what explains why a firm would produce different brands of an essentially identical (or highly close-substitute) good? With different brands, the firm
a. creates higher productivity b. increases its market share c. better satisfies demand d. increases the effectiveness of its advertising e. lowers the cost structures of each brand so that it becomes more efficient
According to Paul Romer, if a country offsets diminishing returns through technological innovation, it can ______.
a. shrink its per-worker production function b. eliminate the need for physical capital investments c. convince citizens to save much of their incomes d. enjoy unimpeded economic growth
a change in the full-employment quantity of labor ________ the short-run aggregate supply curve and
What will be an ideal response?