Roger owns a small health store that sells vitamins in a perfectly competitive market. If vitamins sell for $12 per bottle and the average total cost per bottle is $12.50 at the profit-maximizing output level, then in the long run
a. more firms will enter the market.
b. some firms will exit from the market.
c. the equilibrium price per bottle will fall.
d. average total costs will fall.
b
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The average propensity to consume is
A) real consumption expenditures divided by real saving. B) real saving divided by real consumption expenditures. C) real consumption expenditures divided by real disposable income. D) real disposable income divided by real consumption expenditures.
The marginal social benefit curve for a product can be the same as the good's
A) marginal cost curve. B) supply curve. C) demand curve. D) consumer surplus curve.
Actions like entering a new market, pricing a new product, or making a bid to buy another company are all useful Nash-like managerial decisions because they are
A. not repeated often and the outcome depends on the coordination of decisions with rivals. B. repeated often and the outcome depends on the simultaneous decisions of rivals. C. not repeated often and the outcome depends on the simultaneous decisions of rivals. D. repeated often and the outcome depends on the coordination of decisions with rivals.
Discretionary fiscal policy is a fiscal policy action, such as
A) a decrease in tax receipts, initiated by the state of the economy. B) an increase in payments to the unemployed, initiated by the state of the economy. C) an interest rate cut, initiated by an act of Congress. D) an increase in the quantity of money. E) a tax cut, initiated by an act of Congress.