The entry of new firms into an industry lowers the economic profit of the existing firms
a. True
b. False
Indicate whether the statement is true or false
True
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Consider the following statements when answering this question I. It is impossible to shift taxes from producers to consumers without hurting the latter. II. Only polluters pay (through production taxes) for the environmental damage they cause
A) I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) I and II are false.
An important factor in the decline of the U.S. textile industry over the past 100 or so years is
a. foreign competitors that can produce quality textile goods at low cost. b. lower prices of goods that are substitutes for clothing. c. a decrease in Americans' demand for clothing, due to increased incomes and the fact that clothing is an inferior good. d. the fact that the minimum wage in the U.S. has failed to keep pace with the cost of living.
Figure 5-4
Refer to . If the government uses a pollution tax, how much of a tax must be imposed on each unit of production?
a.
$1.90
b.
$1.80
c.
$1.60
d.
$0.30
A stochastic process refers to a:
A. sequence of random variables indexed by time. B. sequence of variables that can take fixed qualitative values. C. sequence of random variables that can take binary values only. D. sequence of random variables estimated at the same point of time.