Firms in perfect competition will leave the industry if they
a. suffer short-run losses
b. suffer losses, even if they are covering variable costs in the short run
c. suffer long-run losses
d. earn a normal profit
e. earn a zero economic profit
C
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For typical goods, supply curves are
A) downward sloping. B) upward sloping. C) horizontal. D) vertical.
Featherbedding means that
A) company management receives a cut from the collected union wages. B) employers are force to hire apprentices. C) employers are forced to hire more workers than they want to. D) a union can join a sympathy strike.
Which one of the following types of cost declines over the whole range of output?
a) total fixed cost b) marginal cost c) average fixed cost d) average variable cost e) total variable cost
If the public debt increased by the same amount each year during the past three years, then
A. the U.S. Treasury must have issued securities to fund a flow of government spending that exceeded a flow of tax revenues by the same amount during each of the past three years. B. the U.S. government must have operated with the same budget surpluses during the past three years. C. the U.S. government must have experienced budget surpluses that increased by the same amount each of the past three years. D. during each of the past three years, the U.S. Treasury must have bought back the same amount of securities that had previously been issued to cover deficits experienced more than three years ago.