In the long run in a perfectly competitive market:
A. firms earn zero economic profits.
B. firms operate at an efficient scale.
C. supply is perfectly elastic when all firms have the same cost structure.
D. All of these are true.
D. All of these are true.
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The market for used cars is shown in the above figure. Buyers cannot tell whether any given car is a lemon. Forty percent (40%) of all cars are lemons. However, sellers can switch to selling lemons at lower costs
Which of the following statements is TRUE? A) Only lemons are sold for $1,600. B) Only lemons are sold for $800. C) All the sellers of good cars will switch to selling lemons. D) 40% buyers will get lemons.
Suppose that when the price of root beer rises 1%, the quantity of hotdogs demanded falls 0.5%. This would mean that hotdogs and root beer are
A) substitutes, with a cross price elasticity of 0.5. B) complements, with a cross price elasticity of -0.5. C) substitutes, with a cross price elasticity of -2.0. D) complements, with a cross price elasticity of -2.0.
Macroeconomics is the study of aggregate variables such as national production and unemployment
Indicate whether the statement is true or false
A dominant strategy is one that gives a player in a game a bigger payoff than the other player receives
a. True b. False Indicate whether the statement is true or false