Which of the following features is common to both perfect competition and monopolistic competition?
A. New firms are free to enter the market in the long run.
B. Each firm produces a perfectly homogeneous product.
C. An individual firm faces a horizontal demand curve.
D. The firms earn positive economic profit in the long run.
Answer: A
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The main difference between the short run and the long run is that:
A) in the short run all inputs are fixed, while in the long run all inputs are variable. B) in the short run the firm varies all of its inputs to find the least-cost combination of inputs. C) in the short run, at least one of the firm's input levels is fixed. D) in the long run, the firm is making a constrained decision about how to use existing plant and equipment efficiently.
When sketched as a function of disposable income, the investment demand curve is:
a. always horizontal. b. always vertical. c. upward sloping. d. parabolic.
A country can develop without a large natural resource base
a. True b. False Indicate whether the statement is true or false
For the typical student, taking an introductory course in economics should
a. turn the student into an economist. b. teach the student solutions to most social problems. c. teach the student how to answer complex social questions. d. help the student learn to make rational decisions. e. All of the above are correct.