When monopolistically competitive firms earn ________ economic profits, other firms ________ an industry in the long run.
A. negative; enter
B. zero; exit
C. zero; enter
D. positive; enter
Answer: D
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The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. 
Firm A's dominant strategy is to ________, and Firm B's dominant strategy is to ________.
A. not invest; not invest B. invest; not invest C. invest; invest D. not invest; invest
A movie monopolist sells to students and adults. The demand function for students is QdS = 600 - 100P and the demand function for adults is QdA = 1,200 - 100P. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What price per ticket does the theater charge students to maximize profits?
A. $4 B. $7 C. $6 D. $12
According to the Law of One Price, if two countries produce an identical good, assuming transportation costs and trade barriers are not an issue ________
A) the value of the currency in both countries should rise B) the value of the currency in both countries should fall C) the price of the good should be the same in the two countries D) the value of the currency in one country will rise by the same amount that the value of the currency in the other country falls
The "gang system" is an example of:
a. specialization and division of labor. b. diminishing marginal product. c. the envelope theorem. d. Gresham's law.