Regardless of the cost structure of firms in a competitive market, in the long run
a. firms will experience rising demand for their products.
b. the marginal firm will earn zero economic profit.
c. firms will experience a less competitive market environment.
d. exit and entry is likely to lead to a horizontal long-run supply curve.
b
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Consider a fall in the wage rate. How does the substitution effect change the amount of labor that a firm hires? How does the scale effect change the amount of labor that a firm hires? What do these effects imply about the firm's long-run demand for labor?
What will be an ideal response?
Needs-tested spending is best described as
A) spending on programs that entitle qualified persons and businesses to receive benefits. B) spending on programs that have been tested in some manner. C) spending on programs that have proven over time to be sound investments. D) spending on programs that are considered necessities (needed) according to surveys of the public. E) not spending at all but a reference to the reliability of budget.
Purchasing power parity means equal rates of return
Indicate whether the statement is true or false
The efficiency of steamboats was commonly measured by
(a) the carrying capacity of the steamboat fleet in terms of tonnage. (b) per unit labor costs per vessel. (c) the tonnage per vessel transported upstream. (d) the actual tonnage transported up and downstream each day.