If firms in a monopolistically competitive industry are making profits in the short run
A) some firms will ultimately exit the industry.
B) barriers to entry will be erected to keep out rivals.
C) new firms will enter the market.
D) they will resort to advertising wars to help sustain these profits.
C
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The marginal product of a country's workers increases during summer due to the pleasant weather. Which of the following is likely to happen in this case, assuming all else equal?
A) The country's labor demand curve will shift to the left in summer. B) There will be a downward movement along the labor demand curve. C) There will be an upward movement along the labor demand curve. D) The country's labor demand curve will shift to the right in summer.
Assume a small nation has the following statistics: its consumption expenditure is $15 million, investment is $2 million, government purchases of goods and services is $1 million, exports of goods and services to foreigners is $1 million, and imports
of goods and services from foreigners is $1.5 million. Calculate this nation's GDP.
How does the owner of a sole proprietorship relate to the business?
A) The assets of the owner are considered separate from the assets of the business. B) The owner and the business are not separate legal entities. C) The owner and the business are separate legal entities. D) None of these describe the legal relationship of the owner to the business.
If P = Q/15 represents market supply for a competitive industry and market demand is given by Qd = 500 - 10P, the equilibrium quantity is:
A. 250. B. 187.5. C. 300. D. 150.