As long as economic profits are being earned in an industry, firms will ________ the industry and the supply curve will shift to the ________.
A. enter; left
B. exit; left
C. enter; right
D. exit; right
Answer: C
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A monopoly is the only seller of a product
A. without a wellminusdefined demand curve. B. with many substitutes. C. with a perfectly inelastic demand. D. without a close substitute.
Which of the following statements regarding preferences and indifference curves is true?
A. When choosing between two consumption bundles, a consumer will always prefer the consumption bundle on the lower indifference curve. B. A consumer is indifferent between two consumption bundles that are on the same indifference curve. C. When choosing between two consumption bundles, a consumer will always prefer the consumption bundle that is farthest to the right on an indifference curve. D. When choosing between two consumption bundles, a consumer will always prefer the consumption bundle that is farthest to the left on an indifference curve.
In a small country, the effect of a given change in government spending
A) on output is large and the effect on the trade balance is small. B) on output is large and the effect on the trade balance is large. C) on output is small and the effect on the trade balance is small. D) on output is small and the effect on the trade balance is large.
Which of the following conditions is TRUE for a monopolist?
A. MR = P B. MR < P C. MR = AFC D. MR < AVC