The entry of new firms into a competitive industry in the long run has the effect of
a. driving up long-run equilibrium price
b. eliminating economic profits
c. reducing equilibrium quantity
d. making the demand curve facing each firm more inelastic
e. shifting the cost curves for each firm by an amount equal to total cost divided by the number of firms
B
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Which of the following statements about the Sherman Act is CORRECT?
A) The Sherman Act was the second federal antitrust law. B) The Sherman act legalized monopolization if the company behaved "reasonably" once it became a monopoly. C) The Sherman Act outlawed natural monopolies. D) The Sherman Act made restriction of interstate trade illegal.
Which of the following statements is true?
A) A direct relationship has a negative slope value. B) A straight line has a slope of one. C) A curved line has slope values that change at every point. D) An inverse relationship has a positive slope value.
Holding everything else constant, a country's imports will decrease if the:
A) country's currency appreciates. B) country's currency depreciates. C) country's currency is revalued. D) none of the above.
An expansionary fiscal policy will lead to
a. higher interest rates, an appreciated dollar, and reduced net exports. b. higher interest rates, an appreciated dollar, and increased net exports. c. reduced interest rates, an appreciated dollar, and reduced net exports. d. reduced interest rates, an appreciated dollar, and increased net exports.