When a new firm enters a market, it:
A.) Pushes the equilibrium price upward.
B.) Reduces the profits of existing firms.
C.) Shifts the market supply curve to the left.
D.) Shifts the market demand curve to the left.
B.) Reduces the profits of existing firms.
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Economic efficiency definitely occurs whenever
A) a firm cannot increase its output without increasing all its inputs. B) there are no implicit costs. C) the most modern technology is used in the production process. D) the firm produces a given output at the least cost.
If the GDP deflator is equal to 100, then for that year nominal GDP is equal to real GDP
Indicate whether the statement is true or false
If a firm raises the price of its product, its total revenue will
a. always increase b. increase only if demand is price inelastic c. increase only if demand is price elastic d. remain constant, regardless of price elasticity of demand e. never increase
The direct exchange of one good or service for another is called
A. a token exchange. B. barter. C. the exchange of purchasing power. D. a standard of deferred payment.