As a perfectly competitive firm produces more and more of a good, its economic profit
A) constantly increases.
B) constantly decreases.
C) first decreases, then increases.
D) first increases, then decreases.
E) does not change.
D
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Spending on programs that Congress authorizes ________ is known as discretionary spending
A) after approval from the Federal Reserve B) on an off-budget emergency basis C) by prior law D) on an annual basis
Alison consumes only tea and cookies and consumes them only in equal proportions. What is Alison's income elasticity of demand for tea?
What will be an ideal response?
In this situation, the monopoly's profits are:
a. 0.40. b. 0.16. c. 0.12. d. 0.08.
In the long run, if new fringe firms with same cost structures as existing fringe firms enter the oligopoly market:
a. the dominant firm's ability to extract profit from the market decreases. b. the fringe's ability to extract profit from the market decreases. c. the fringe supply curve rotates leftward and downward. d. the dominant firm's residual demand curve rotates rightward.