We assume that in the long run in a perfectly competitive market:
A. the firms can enter or exit.
B. the number of firms is fixed.
C. the price will be constant.
D. collusion will set in without government regulation.
A. the firms can enter or exit.
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Unemployment in the United States varies considerably over time.
Answer the following statement true (T) or false (F)
Which of the following statements is NOT true regarding DeBeers' rise to monopoly power in the diamond market?
a. DeBeers produces about 40 percent of the world's raw diamonds and controls another 30 percent. b. DeBeers achieved dominance in this market by gaining control of South Africa's Kimberley "pipe," the world's largest source in the late nineteenth century. c. DeBeers carefully limited the amount of diamonds it released into the market. d. DeBeers did not worry about diamonds being discovered elsewhere because it already had full control of the industry in South Africa.
Within the context of the housing market, what does MBS stand for?
a. Multi-Banking System b. Mortgage Backed Security c. Mortgage Bubble System d. Mixed Bracket Securities
Which of the following statements is necessarily true regarding a point along a budget line? a. It implies an individual has spent her entire income
b. It implies an individual is as happy as possible given her income. c. It implies an individual no longer faces tradeoffs between both goods. d. It implies an individual would be better off consuming a different bundle of goods.