If monopolistic competitors are taking losses, in the long run firms ________ and market price will ________.
Fill in the blank(s) with the appropriate word(s).
leave the industry; rise
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When a consumer wants to compare the price of one product with another, money is primarily functioning as a
A. medium of exchange. B. checkable deposit. C. store of value. D. unit of account.
Which of the following is NOT a possible resolution of externalities?
a. Coasian bargaining b. regulatory directives c. taxes and subsidies d. cap and trade e. all of the above are possible resolutions of externalities
The single currency project in the EU will be most successful if European labor is relatively
A) immobile. B) immobile and business cycles are not synchronized. C) mobile and business cycles are synchronized. D) mobile and business cycles are not synchronized.
(Consider This) What is the difference between financial investment and economic investment?
A. There is no difference between the two. B. Financial investment refers to the purchase of financial assets only; economic investment refers to the purchase of any new or used capital goods. C. Economic investment is adjusted for inflation; financial investment is not. D. Financial investment refers to the purchase of assets for financial gain; economic investment refers to the purchase of newly created capital goods.