In long-run equilibrium for a monopolistically competitive industry,
A. all firms break even.
B. all firms suffer losses.
C. firms can earn a profit, suffer a loss, or break even.
D. all firms earn a profit.
Answer: A
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A bank is solvent when:
A) its stockholders' equity exceeds the value of its assets. B) the value of its liabilities exceeds its stockholders' equity. C) the value of its total assets exceeds the value of its liabilities. D) the value of its liabilities exceeds the value of its assets.
The income elasticity of demand for movies in the United States is 3.41. If people's incomes decrease by 1 percent, what is the decrease in the quantity of movies demanded?
What will be an ideal response?
Income on the horizontal axis at which the vertical distance to the 45-degree line is less than the vertical distance to the Ep line gives rise to a ________ amount of unplanned inventory investment, and thus ________ pressure on output
A) positive, upward B) positive, downward C) negative, upward D) negative, downward
Like the short run
A) the long run supply curve is the sum of the individual firms' supply curves. B) the maximum number of firms in the market is fixed. C) firms operate only if they make a positive profit. D) All of the above.