A monopolistically competitive firm is like a perfectly competitive firm insofar as
A) both face perfectly elastic demand.
B) both make an economic profit in the long run.
C) both have MR curves that lie below their demand curves.
D) both make zero economic profit in the long run.
D
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A decrease in unplanned inventory investment for the entire economy equals the excess of
A) output over aggregate supply. B) output over aggregate demand. C) aggregate supply over output. D) aggregate demand over output.
Frictional unemployment explains why unemployment rises during a recession and falls during an economic expansion.
Select whether the statement is true or false. A. True B. False
If the U.S. government were to note that because drug companies can sell their drugs in Canada and make a profit at those regulated prices and impose a similar set of regulations in the U.S., this would have the effect of
A. lowering the price of drugs in the U.S. B. increasing the motivation for U.S. drug companies to innovate in the future. C. eliminating all profit for drug companies. D. increasing the motivation for Canadian drug companies to innovate in the future.
When formulating financial policy, managers also have to consider the appropriate balance between:
A. receivables and payables. B. interim and final dividends. C. short-term and medium-termfinance. D. short-term and long-termfinance.