If more foreign steel plants relocate to the United States, we would expect
A) the U.S. supply curve for steel to shift to the right.
B) the U.S. supply curve for steel would shift to the left.
C) that the U.S. steel market would not respond.
D) that U.S. steel demand might change, but U.S. steel supply would remain the same.
Answer: A
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The money demand curve has a
A) positive slope because an increase in the price level increases the quantity of money demanded. B) negative slope because an increase in the interest rate decreases the quantity of money demanded. C) negative slope because an increase in the price level decreases the quantity of money demanded. D) positive slope because an increase in the interest rate increases the quantity of money demanded.
Monopolistic competition occurs in a market with free entry:
A. when there are only a few firms, each producing a unique product, prices above marginal cost and earns zero profit net of fixed costs. B. when there is a large number of firms, each producing an identical product, prices above marginal cost and earns zero profit net of its fixed costs. C. when there is a large number of firms, each of which produces a unique product, prices above marginal cost and earns zero profit net of its fixed costs. D. when there is a large number of firms, each of which produces a unique product, prices above marginal cost and earns a positive profit net of its fixed costs.
Fixed costs of entry create an advantage for potential entrants since incumbents have already made these expenditures while potential entrants can avoid these costs
Indicate whether the statement is true or false
The point of maximum profit for a business firm is where:
a. P = AC. b. TR = TC. c. MR = AR. d. MR = MC. e. TR = MR.