When economic profits in a perfectly competitive industry are positive
A) new firms will be attracted to the industry, and economic profits will decline to zero.
B) the industry is in equilibrium.
C) firms will increase output to earn even higher profits.
D) firms will increase prices while they have the opportunity.
Answer: A
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Answer the following statements true (T) or false (F)
1) Managers can reduce production or delivery costs by keeping an inventory of the goods they produce or sell. 2) Managers incur opportunity costs from holding goods in inventory. 3) The cost minimizing inventory sets the marginal benefit of increasing the order size equal to its marginal cost. 4) In most cases, the cost-minimizing order quantity depends on the variable cost per unit of ordering. 5) The optimal order quantity and the optimal inventory level increase as the cost of carrying a unit in inventory increases.
Frictional unemployment goes up when:
A. Students quit work to return to school at the end of the summer. B. A corporation transfers a worker to another city. C. A worker quits one job in order to search for another. D. There is inadequate demand for labor.
Since 1948, the history of real wage rates generally shows that
A. prices and wages have risen at the same rate. B. prices have risen at a slower rate than wages. C. prices have risen faster than wages. D. real wages have remained constant over the period.
If a nation can produce greater quantities of a good than another nation, it has a(n)
A. comparative advantage. B. absolute advantage. C. declarative advantage. D. entire advantage.