When more firms enter an industry:
A. the amount produced by each of the new firms will be less than the amount produced by each of the original firms.
B. the industry supply curve will shift right.
C. the industry supply curve will shift left.
D. the amount produced by each of the new firms will be greater than the amount produced by each of the original firms.
Answer: B
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Futures contracts differ from forward contracts in that
A) future contracts ensures you will receive a certain amount of foreign currency at a specified future date. B) future contracts bind you into your end of the deal. C) future contracts allow you to sell your contract on an organized futures exchange. D) future contracts are a disadvantage if your views about the future spot exchange rate are to change. E) futures contracts don't allow you to realize a profit of a loss right away.
Analyzing healthcare costs in the United States is interesting because
A. other industrialized countries spend less and get better outcomes. B. the opportunity costs of healthcare appear to be too high. C. the healthcare system appears to be wasting resources. D. All of the above
When there is an externality in a market
A) the externality will move the market to an economically efficient equilibrium. B) the externality will cause the market price to be less than or greater than the equilibrium price. C) the government should use price controls to enable the market to reach equilibrium. D) government intervention may increase economic efficiency.
The purchase by an American firm of the right to produce a prescription drug patented in Germany best illustrates a:
A. trade flow. B. capital flow. C. goods and services flow. D. technology flow.