If additional information is not used when forming an optimal forecast because it is not available at that time, then expectations are
A) obviously formed irrationally.
B) still considered to be formed rationally.
C) formed adaptively.
D) formed equivalently.
B
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Natural pollutants
a. are those contaminants that are linked to human activity b. include such contaminants as lead and carbon monoxide c. are the same as anthropogenic pollutants d. are those arising from nonartificial processes in nature
Exhibit 10-2 A monopolistic competitive firm
If all firms in a monopolistic competitive industry have demand and cost curves like those shown in Exhibit 10-2, we would expect that in the long run:
A. all firms will leave the industry. B. some firms will leave the industry. C. firms in the industry earn zero economic profits. D. a number of new firms will enter the industry.
In the above figure, if this natural monopolist were forced to use marginal cost pricing, it would sell the product at the price
A. A. B. C. C. E. D. F.
Refer to the above figure. As more and more firms are able to and actually do enter the industry, the demand curve of each firm and its marginal revenue curve
A. will become upward sloping. B. will shift inward until the demand curve is tangent to the average total cost curve. C. will become vertical. D. None of these will occur.