The length of the short-run is the same for all firms
Indicate whether the statement is true or false
False. Firms differ in their ability to change the amount of capital they employ. Therefore, the short-run period is likely different for firms in different industries.
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The marginal revenue curve of a perfectly competitive firm
A) has a vertical intercept equal to exactly one-half of the vertical intercept for the demand curve. B) lies below the demand curve and above the average revenue curve. C) intersects the average revenue curve from above at the maximum point of the average revenue curve. D) is also the demand curve faced by the firm.
When people refuse to pay down debt with their savings:
A. they are forgetting that money is fungible. B. they will be poorer in the long run. C. they are acting irrationally. D. All of these are true.
In the monopoly market structure, new firms
a. cannot profitably enter the industry, even in the long run b. may freely enter and leave the industry in both the short run and the long run c. may freely enter and leave the industry in the long run only d. may freely enter and leave the industry in the short run only e. have no incentive to enter the industry, even if economic profits are present
Gross domestic product minus
a. net domestic product equals national income b. depreciation equals net domestic product c. indirect business taxes equals national income d. gross domestic product equals personal income e. net domestic product equals gross domestic product