In short-run equilibrium, a perfectly competitive firm can never earn an economic profit.
Indicate whether the statement is true or false
Ans: False
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Collusion is a key type of cooperation for
A. maximizing revenue. B. monopolistic competition. C. becoming a monopoly. D. cartels.
A consulting firm estimates the following quarterly sales forecasting model:Qt = a + bt +cDThe equation is estimated using quarterly data from 2005 I -2015 III (t = 1,..., 43). The variable D is a dummy variable for the second quarter where: D = 1 in the second quarter, and 0 otherwise. The results of the estimation are: 
Using the estimated trend line above, what is the predicted level of sales in 2016 I ?
A. 106.20 B. 102.2 C. 104.34 D. 110.06 E. none of the above
An article in the Wall Street Journal in early 2001 noted two developments in the market for laser eye surgery. The first development concerned side effects from the surgery, including blurred vision. The second development was that the companies renting
eye-surgery machinery to doctors had reduced their charges. In the market for laser eye surgeries, these two developments A) decreased demand and decreased supply, resulting in a decrease in the equilibrium quantity and an increase in the equilibrium price of laser eye surgeries. B) decreased demand and increased supply resulting in an increase in both the equilibrium quantity and the equilibrium price of laser eye surgeries. C) decreased demand and increased supply, resulting in a decrease in the equilibrium price and an uncertain effect on the equilibrium quantity of laser eye surgeries. D) decreased demand and increased supply, resulting in a decrease in both the equilibrium price and the equilibrium quantity of laser eye surgeries.
If the marginal propensity to consume is 0.80, the value of the spending multiplier will be 5
a. True b. False Indicate whether the statement is true or false