In the long run, if price is less than average cost
A) there is an incentive for firms to exit the market.
B) there is no incentive for the number of firms in the market to change.
C) there is profit incentive for firms to enter the market.
D) the market must be in long-run equilibrium.
A
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A country on a gold standard was able to maintain people's confidence in the value of its currency by:
a. printing more and more paper money. b. restricting international exchange of goods and services. c. ensuring the convertibility of paper money into gold. d. maintaining a fixed stock of foreign currencies. e. ensuring balance of payment surplus.
Consider a U-shaped long-run average cost curve that has a minimum efficient scale at 6,000 units of output. In this case, this industry would be
A) an oligopoly if the market quantity demanded is 18,000 units. B) perfectly competitive if the market quantity demanded is 20,000 units. C) an oligopoly if the four-firm concentration ratio is more than 10 percent. D) monopolistically competitive if the market quantity demanded is 12,000 units.
When all costs and benefits in a cost-benefit analysis do not occur at the same point in time, a discount rate is used to _____
a. reduce the future costs and benefits relative to current costs and benefits b. increase future costs and benefits relative to current costs and benefits c. increase current costs relative to future benefits d. reduce future costs relative to current costs
The following is budget information for a hypothetical economy. All data are in billions of dollars.YearGovernment SpendingTax RevenuesGDP1$1,100$1,000$10,00021,2501,40010,20031,4501,45010,50041,6001,50010,90051,8001,55011,200Refer to the above data. In which year is there a budget surplus?
A. Year 1 B. Year 2 C. Year 3 D. Year 4