In a perfectly competitive market, the process of entry and exit will end when (i) accounting profits are zero. (ii) economic profits are zero. (iii) price equals minimum marginal cost. (iv) price equals minimum average total cost
a. (i) and (ii) only
b. (ii) and (iii) only
c. (ii) and (iv) only
d. (i), (ii), (iii), and (iv)
c
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The real wage is the wage:
A. measured in current dollars. B. employers are required to pay workers. C. required to maintain a minimum standard of living. D. measured in terms of purchasing power.
Increases in productivity cause the:
A. production function to shift upward. B. production function to shift downward. C. depreciation function to shift downward. D. investment curve to shift downward.
As opportunity cost of holding money increases, people can
A) do nothing. B) increase the demand for money but not the quantity of money they hold. C) find a better job. D) try to maximize marginal benefit. E) seek substitutes for money.
Consider an industry that is made up of nine firms each with a market share (percent of sales) as follows:
a. Firm A: 30% b. Firm B: 20% c. Firms C, D, and E: 10% each d. Firms F, G, H, and J: 5% each What is the value of the four-firm concentration ratio and how is the industry categorized? A) 80%; strongly oligopolistic B) 70%; oligopoly C) 50%; monopolistic competition D) 75%; oligopoly