In a perfectly competitive market, entry and exit are the driving forces behind a process that, in the long run, pushes the price _____
a. to the zero-profit point
b. to the shutdown point
c. below the average variable cost
d. above the zero-profit point
a
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If an economist claims there are substitutes for fossil fuels, she is really saying
A) fossil fuels don't have to be economized. B) fossil fuels aren't scarce goods. C) fossil fuels aren't important. D) fossil fuels are used, and maintained, only at a cost. E) economists don't care for fossil fuels.
In third-degree price discrimination, markets with a larger price elasticity of demand are ________ responsive to price changes and are charged ________ prices than markets with a smaller price elasticity of demand.
A) less; lower B) more; higher C) more; lower D) less; higher
"Satisficing" rather than "maximizing" primarily emerges under conditions where
a. information is costly. b. management lacks ambition. c. profit maximization is rejected on moral grounds. d. risk is minimal.
If the Fed decreases the discount? rate, relative to the federal funds? rate, then this
a. would cause the money supply to decrease. b. would cause the required reserve ratio to increase. c. would decrease the cost of funds for institutions borrowing from the Fed. d. would increase the cost of funds for institutions borrowing from the Fed.