In a perfectly competitive market, if market price is higher than the average total cost of production, ________
A) firms will incur losses in the long run
B) firms will make profits in the long run
C) new firms will enter the industry
D) firms will exit the industry
C
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Two firms in an oligopoly can always do better if one firm buys the other.
Answer the following statement true (T) or false (F)
A firm will tend to follow competitors when they increase spending on R&D but will not follow them when they decrease such spending.
Answer the following statement true (T) or false (F)
For a fixed percent reduction in pollution emissions to be economically efficient, it would have to be the case that
A. enforcement is vigorous. B. the marginal cost of pollution control is the same across all firms. C. all firms be the same size. D. large polluters reduce emissions by more than small polluters.
How long can a family collect aid from the Temporary Assistance for Needy Families (TANF) program?
(A) A maximum of five years. (B) As long as necessary. (C) A maximum of ten years. (D) A maximum of two years.