If a typical firm in a perfectly competitive industry is earning profits, then
A) new firms will enter in the long run causing market supply to increase, market price to fall, and profits to decrease.
B) all firms will continue to earn profits.
C) the number of firms in the industry will remain constant in the long run.
D) new firms will enter in the long run causing market supply to decrease, market price to rise, and profits to increase.
A
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A situation in which both players can adopt moves such that each player’s move is its most profitable response to the move of the other is the
A. prisoner’s dilemma. B. Nash equilibrium. C. maximin criterion. D. tacit collusion.
All else equal, which of the following would increase the unemployment rate? (i) an increase in the number of women who return to work after being stay-at-home mothers (ii) a preference among older men to retire early (iii) an increase in the maximum number of weeks for which someone can receive government unemployment benefits (iv) an increase in the number of previously unemployed women who
stop looking for work and become discouraged workers a. (i) and (ii) only b. (iii) only c. (ii) and (iii) only d. (ii), (iii), and (iv) only
Identify the correct statement.
A. If a country is likely to be buffeted mainly by internal shocks, the country should choose a fixed exchange rate. B. The effects of shocks under floating exchange rates depend on whether interventions are sterilized. C. International trade shocks can be countered by adopting a fixed exchange rate that helps to improve the price competitiveness of the country's products. D. International capital-flow shocks are likely to be less disruptive under fixed exchange rates.
Many public utilities are permitted to operate as monopolies because they enjoy economies of large-scale production.
Answer the following statement true (T) or false (F)