A decrease in supply will cause a(n)
a. increase in demand
b. decrease in demand
c. increase in quantity demanded
d. decrease in quantity demanded
e. decrease in equilibrium price
D
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When a monopolistically competitive firm breaks even in the long run, this is equivalent to earning a zero accounting profit
Indicate whether the statement is true or false
Which of the following is not a reason for solving the model with a PPF?
A) It merges the household and firm problems into one graph. B) It is simpler to solve the social planner problem. C) It highlights the fact that the marginal rate of substitution should equal the marginal rate of transformation. D) It highlights the fact that firms make no profit in equilibrium.
A critical element of entrepreneurship (as opposed to managerial skills) is
A) leadership skills. B) risk taking. C) technology. D) political skills.
The sum of consumer and producer surplus measures the total benefits that buyers and sellers receive from participating in a market
a. True b. False Indicate whether the statement is true or false