You could conclude that
A. new firms will enter the industry.
B. existing firms will leave the industry.
C. existing firms will continue to make a profit, even in the long run.
D. new firms will leave the industry.
A. new firms will enter the industry.
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The shoe leather costs of inflation include all of the following except:
A. the cost of more frequent trips to the bank. B. the installation of a new cash management system. C. the extra costs incurred to avoid holding cash. D. the lost purchasing power of cash.
In the equation of exchange, "Q" stands for
A) the interest rate. B) quality. C) GDP. D) Real GDP.
If a firm increases its capital stock per person while holding constant the number of workers employed, the firm is said to experience:
A. capital augmentation. B. investment deepening. C. labor intensity. D. capital deepening.
When a family's income is low and it is spending more on consumption than it is receiving in income
A. some segment of the consumption function curve lies above the 45-degree line, indicating dissaving. B. the APC must be equal to the ratio of planned consumption expenditure to total saving. C. the APC must be increasing. D. the MPC must be zero.