A firm will enter a competitive market when
A) it can gather market share at the expense of incumbent firms.
B) it would not be the last firm entering.
C) it can earn a positive long-run profit.
D) the long-run supply curve is upward sloping.
C
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Using a graph, show the effects of a weaker dollar on the economy. Explain
What will be an ideal response?
The Baker Plan for addressing the debt crisis was based on the assumption that
A) most countries would eventually default on their debt. B) forgiveness of some of the debt was inevitable. C) renewed lending by U.S. and European banks would undermine push for economic reforms. D) hyperinflation would eventually reduce the real value of the debt. E) renewed lending by U.S. and European banks would restore growth and make the debt manageable.
The interest rate that banks charge on loans to their best customers is called the:
A) federal funds rate. B) discount rate. C) mortgage interest rate. D) prime rate.
Consider the same setup with the curved final exam as in the previous question. Now suppose the students move sequentially. Which best describes the outcome in the subgame-perfect equilibrium?
a. Brainiacs study and Numbskulls party regardless of who moves first. b. Brainiacs party and Numbskulls study regardless of who moves first. c. The party moving first studies. d. The party moving first parties.