When a second firm enters a monopolist's market:
A. market price will drop.
B. sales for the first firm will rise.
C. the first firm's profits will increase.
D. All of these will occur.
Answer: A
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The ________ traces out the points for which total quantity of goods produced equals total quantity of goods demanded
A) LM curve B) IS curve C) consumption function D) investment schedule
The sum of all of debit items in the balance of payments
A. equals "compensating" transactions. B. equals the errors and omissions. C. equals the overall balance. D. equals the sum of all credit items.
Henry George's single-tax movement was based on the argument that:
A. the tax structure should consist solely of a highly progressive tax on nonwage incomes. B. interest is unearned income and should be taxed away by government. C. in less developed countries the supply of and demand for land will be such that land will be a free good and therefore capable of bearing sizable taxes. D. a high tax on land rent is justified because land rent performs no incentive function.
Normal rate of return is
A. economic profit. B. an explicit cost. C. the amount that must be paid to obtain investment in a business. D. accounting profit.