In a perfectly competitive industry, the industry demand curve
A) must be horizontal.
B) must be vertical.
C) is upward sloping.
D) is downward sloping.
Answer: D
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If the interest rate increases, the
a. cost of saving will increase b. cost of borrowing will increase c. firm should decrease the amount of capital it owns by selling capital d. firm should acquire more capital e. supply of loanable funds will increase
Under a marketing quota system,
A) the government sets a limit on the quantity of a product that a farmer is allowed to bring to market. B) farmers are paid to take part of their land out of cultivation. C) farmers are given limits as to the number of acres that can be used to produce a particular product. D) farmers are paid the difference between the market price of their product and a governmentally determined price that would maintain an established price parity. E) the government establishes a minimum price that farmers will be paid for their product, which causes the farmers to cut back on the number of acres planted.
In long-run equilibrium for the monopolistically competitive firm, the equilibrium point
a. at the highest part
b. close to the highest part
c. at the lowest part
d. close to the lowest part
________ determine(s) which products have been produced within a free-trade area and which products have been produced outside the area and therefore are subject to trade barriers.
A. Rules of origin B. Trade diversion C. The most favored nation principle D. Trade creation