In order for a firm to receive monopoly profits, there must be
A) homogeneous products.
B) barriers to market entry.
C) mutual interdependence among firms.
D) free entry and exit to the market.
B
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The time and money it takes to organize a group or a campaign and to get the attention of lots of busy people is the:
A. cost of collective action. B. reason why collective action does not happen in the real world. C. reason why all individuals never participate in any collective action. D. initial set-up costs of the campaign or group.
The sticky-wage model argues that those already working for firms are "insiders," while new employees, at least for a time, are "outsiders."
a. True b. False Indicate whether the statement is true or false
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, these flows would have had the following effect on the reserves account and monetary base
a. Reserves account would rise and monetary base would fall. b. Reserves account would not change and monetary base would not change. c. Reserves account would fall and monetary base would not change. d. Reserves account would fall and monetary base would fall. e. Reserves account would fall and monetary base would rise.
If demand is represented by Qd = 50 - 0.5P + 0.005I where I = $50,000 and supply is represented by Qs = 100 + 0.4P -2W where wages (W) = $15.00, compute the equilibrium price and quantity. What happens if income falls to I = $40,000?
What will be an ideal response?