What is likely to occur over the long run if it is easy for new firms to enter an oligopolistic industry?
a. The general level of prices will begin to approach average total cost.
b. The general level of prices will rise well above average total cost.
c. It will become easier for a cartel to form consensus about pricing decisions.
d. The industry will become more oligopolistic and could trigger an antitrust probe.
a. The general level of prices will begin to approach average total cost.
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The ability of an economy to produce greater levels of output in the same period of time is called:
a. positive economics. b. negative economics. c. economic growth. d. marginal productivity.
When we add a personal income tax to the macroeconomic model, the
a. multiplier becomes larger. b. multiplier becomes smaller. c. expenditures schedule shifts upward. d. expenditures schedule becomes steeper.
?The Keynesian-cross model is based on the idea that the ____ must equal total output.
a. components of consumption
b. components of aggregate supply
c. components of aggregate demand
d. net exports
A firm hiring labor in a perfectly competitive labor market faces a:
A. downsloping labor supply curve and upsloping labor demand curve. B. upsloping labor supply curve and downsloping labor demand curve. C. upsloping labor supply curve and horizontal labor demand curve. D. horizontal competitive wage curve and downsloping labor demand curve.