When the market is in long-run equilibrium in a perfectly competitive market, this implies that in the long run means
A. no firm in the industry has an incentive to exit.
B. no firm outside the industry has an incentive to enter.
C. no firm in the industry has an incentive to increase or decrease its output.
D. all of these conditions are met in the long run equilibrium.
Answer: D
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Which of the following best expresses the present value of $500 that you have to wait four years and three months to receive?
A. ($500/4.25) × (1+ i) B. ($500/4) × (1 + i)3 C. $500 × 4.25 × (1 + i) D. $500/(1 + i)4.25
Joe's budget constraint equals 500 = 2F + 100S, where $500 is Joe's income, $2 is the price of food (F) and $100 is the price of shelter (S). How much food can Joe buy if he buys one unit of shelter?
A) 2 units B) 200 units C) 250 units D) 400 units
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.
Refer to the table below. From 2005 to 2006, what happened to the values of the Japanese yen and the U.S. dollar relative to each other?
The following table shows the foreign currency per U.S. dollar near the end of January of each year listed.
A. The Japanese yen appreciated and the U.S. dollar depreciated
B. The Japanese yen depreciated and the U.S. dollar depreciated
C. The Japanese yen depreciated and the U.S. dollar appreciated
D. The Japanese yen appreciated and the U.S. dollar appreciated