A competitive market will typically experience entry and exit until accounting profits are zero
a. True
b. False
Indicate whether the statement is true or false
False
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In the eyes of the law, a corporation is a legal "person," separate from its owners. Explain what this means
What will be an ideal response?
The following appeared in a Florida newspaper a week after a hurricane hit the state. "Floridians are relieved that the storm produced no fatalities but homeowners face weeks, if not months, of rebuilding. Matters are made worse by the soaring prices of plywood and other building materials that always follow in a hurricane's path. Complaints of profiteering and price gouging have not deterred firms from raising their prices by over 100 percent." Which of the following offers the best explanation for the price increases referred to in the article?
A) The hurricane caused an increase in the demand for building materials. B) The hurricane created an artificial shortage of building materials. C) There was a reduction in supply as firms shipped plywood and other materials to locations not affected by the storm. D) The hurricane reduced the number of suppliers of building materials.
Ten cases of spring water are sold for $6 each, and the marginal product of the last unit of labor is 5 . If the price of a case increases from $6 to $8, then the marginal revenue product of the last unit of labor would
a. decrease by $10 b. increase by $40 c. decrease by $30 d. increase by $10 e. not change
Cyclical unemployment is:
A. unemployment caused by short-term economic fluctuations reflected in GDP growth. B. unemployment resulting from a mismatch between the skills workers can offer and the skills demanded. C. unemployment caused by workers who are changing their location, job, or career. D. the effect of wages remaining persistently above the market-clearing level.