In the long-run, profits will exist for firms in monopolistically competitive firms but not monopoly
Indicate whether the statement is true or false
F
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During a recession, cyclical unemployment ________ and real GDP ________
A) increases; increases B) increases; decreases C) decreases; decreases D) decreases; increases E) does not change; decreases
An exogenous increase in the country's trade balance shifts the
a. IS schedule to the left. b. IS schedule to the right. c. LM schedule to the left. d. LM schedule to the right.
Which of the following conditions would result in the short run marginal cost curve not correctly reflecting the supply behavior of a profit maximizing firm?
a. The firm is a price taker. b. Price exceeds average total cost. c. The elasticity of demand facing the firm is ?3. d. the firm can vary several inputs in the short run.
If Panera Bread's "clean food" strategy succeeds and customers are willing to pay higher prices for their menu items, the company will
A) no longer be monopolistically competitive. B) continue to earn substantial economic profits in the long run. C) eventually suffer economic losses, as do all fast-casual restaurants. D) likely attract competitors that offer the same kind of food, and all else equal, eventually economic profits will be competed away.